Government Purchases


DEFINITION of '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.

BREAKING DOWN 'Government Purchases'

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.

  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Fiscal Policy

    Government spending policies that influence macroeconomic conditions. ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects ...
  4. Government-Wide Acquisition Contract ...

    A contract in which multiple government agencies align their ...
  5. Gibson's Paradox

    An economic observation made by J. M. Keynes during the period ...
  6. Public Unit Account

    An account that holds funds provided by the United States government ...
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