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IMPLICIT PRICE DEFLATOR: A price index calculated as the ratio nominal gross domestic product to real gross domestic product. Also commonly referred to as the GDP price deflator, the implicit price deflator is used as an indicator of the economy's average price level. This price index is tabulated and reported every three months along with the gross domestic product, national income, and related measures that make up the National Income and Product Accounts maintained by the Bureau of Economic Analysis (BEA).
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                           INTERCEPT, GOVERNMENT PURCHASES LINE: The intercept of the government purchases line indicates autonomous government purchases, government purchases that do not depend on the level of income or production. This can be thought of as government purchases that the government sector undertakes regardless of the state of the economy. Autonomous government purchases are affected by the government purchases determinants, which cause a change in the intercept and a shift of the government purchases line. Government Purchases Line | 
| The government purchases line shows the relation between government purchases undertaken by the government sector and aggregate income or production. The income and production measures commonly used are national income and gross domestic product.A representative government purchases line is presented in the exhibit to the right. This red line, labeled G in the exhibit, is positively sloped, indicating that greater levels of income generate greater government purchases by the government sector. This positive relation indicates that the government sector, especially state and local governments, is inclined to use increasing tax revenue generated by an expanding economy for government purchases. The government purchases line graphically illustrates the government purchases-income relation for the government sector, which is then added to the consumption line to derive the aggregate expenditures line used in Keynesian economics to identify equilibrium income and production. The intercept of the government purchases line indicates the intersection point between the government purchases line and the vertical government purchases axis. The government purchases line intersects the vertical axis at a value of $2 trillion. Theoretically, this is a minimum "baseline" level of government purchases, the amount of government purchases undertaken if aggregate income falls to zero. This intersection indicates autonomous government purchases--government purchases unrelated to income. Click the [Intercept] button to illustrate. Autonomous government purchases are government purchases by the government sector that are unrelated to and unaffected by the level of income or production. This is best indicated by a zero level of income. While individual government entities might come face-to-face with autonomous government purchases, as their own slice of aggregate tax revenue drops to zero, for the aggregate economy autonomous government purchases are mostly an unlikely theoretical extrapolation. However, from an analytical perspective, the intercept of the government purchases line is affected by the government purchases determinants. These are ceteris paribus factors other than income that affect government purchases, but which are held constant when the government purchases line is constructed. Any change in these determinants cause the government purchases line to shift, which necessarily means a new intercept and a new level of autonomous government purchases.
 Recommended Citation:INTERCEPT, GOVERNMENT PURCHASES LINE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: May 15, 2025]. Check Out These Related Terms... | | | | | | | | | | Or For A Little Background... | | | | | | | | | | And For Further Study... | | | | | | | | | | | | | | |
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Today, you are likely to spend a great deal of time searching for a specialty store wanting to buy either storage boxes for your winter clothes or several magazines on time travel. Be on the lookout for the last item on a shelf. Your Complete Scope
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One of the largest markets for gold in the United States is the manufacturing of class rings.
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AMB Adjusted Monetary Base
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