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INDUCED GOVERNMENT PURCHASES: Government purchases that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced government purchases. Induced government purchases is graphically depicted as the slope of the government purchases line and is measured by the marginal propensity for government purchases. The induced relation between income and government purchases, as well as other induced expenditures, form the foundation of the multiplier effect triggered by changes in autonomous expenditures.

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INDUCED INVESTMENT: Business investment expenditures that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced investment expenditures. Induced investment is graphically depicted as the slope of the investment line and is measured by the marginal propensity to invest. The induced relation between income and investment, as well as other induced expenditures, form the foundation of the multiplier effect triggered by changes in autonomous expenditures.

     See also | investment expenditures | national income | gross domestic income | slope | investment line | marginal propensity to invest | autonomous investment | induced investment | induced expenditure | autonomous expenditure | induced saving | multiplier | accelerator |


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INDUCED INVESTMENT, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 11, 2025].


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LAGGING ECONOMIC INDICATORS

Seven economic statistics that tend to move up or down a few months AFTER business-cycle expansions and contractions. Most importantly, these measures indicate peak and trough turning points about three to twelve months after they occur. Lagging economic indicators are one of three groups of economic measures used to track business-cycle activity. The other two are coincident economic indicators and leading economic indicators.

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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
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