Government Purchases
Expenditures made in the private sector by all levels of government, such as when a government entity contracts a construction company to build office space or pave highways. Investopedia Says:
A component of Keynesian expenditures, government purchases can be used as a tool for a government to influence the business cycle and provide economic stimulation when it is deemed necessary. Related Terms:
Business Cycle
Deprivatization
Dismal Science
Fiscal Deficit
Fiscal Policy
Gibson's Paradox
Keynesian Economics
Macroeconomics
Ricardo-Barro Effect |