Journal Article

How does an increase in government purchases affect economy?

Abstract: This article studies the impact on aggregate economic activity of increases in defense purchases which are unrelated to other developments in the economy. The authors use empirical evidence to evaluate the predictions of several prominent models.

Keywords: Economic development; Macroeconomics; Labor market; Expenditures, Public; Defense industries;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 1998

Volume: 22

Issue: Q III

Pages: 29-43