Government Purchases

Government Purchases

The money that a government spends procuring goods or services from the private sector. Examples include a local government hiring a company to repair a road or the national government buying artillery for the military. In Keynesian economics, government purchases are important for stimulating demand in times of economic downturn. That is, when no one will buy goods or services, Keynesian economics states that the government ought to do so in order to keep commerce going.
References in periodicals archive ?
Increases in transfer payments reduce long-run growth because they crowd out government purchases of productive goods and services.
In addition, Federal Government purchases will become a smaller component of GDP, investment a larger one.
A classic question facing macroeconomists is: How does an increase in government purchases affect the economy?
A recent study points out that the average rate of Government purchases of goods and services was 3.
pa) requires all purchases to be announced in this system, thus allowing for more transparency and speed in government purchases.
We don't know whether this increase in government purchases will really reflect in our sales," says Maria Angelica Sanchez, executive vice president at Asilfa, a Chilean pharmaceutical association.
com estimates the volume of government purchases through the agreement will be at least $3.
Full browser ?