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An increase in government purchases will increase aggregate demand because
Consuming Services
Consuming services refers to the use of services provided by businesses or individuals which are utilized and exhausted during the process, such as electricity, consulting, or maintenance services.
Generating Revenues
The process of bringing in income from business activities, sales, or services offered.
Drawing Account
An account used to track withdrawals made by the owner from the business for personal use.
Normal Balance
The side of an account (debit or credit) where increases to the account are recorded, depending on the account's nature.
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