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COMPLEMENT-IN-PRODUCTION: One of two goods that are produced jointly using the same resource -- that is, the production of one good automatically triggers the production of the other. The terms "joint products" or "by-products" are two terms commonly used for complements-in-production. A complement-in-production is one of two alternatives falling within the other prices determinant of supply. The other is a substitute-in-production. An increase in the price of one complement-in-production causes a increase in supply of the other. Complements-in-production are goods produced jointly from the same resource or input. This typically happens when the resource in question has parts that can be separated into different products. One example is the production of two goods -- beef and leather -- from one resource -- cattle. Another complement in production example is lumber and sawdust, both produced from a single tree.
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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 | 
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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, 2000-2026. [Accessed: September 13, 2026].
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BROWN PRAGMATOX
[What's This?]
Today, you are likely to spend a great deal of time strolling around a discount warehouse buying club trying to buy either high-gloss photo paper that works with your printer or a desktop calendar with all federal and state holidays highlighted. Be on the lookout for telephone calls from former employers.
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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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"Just as iron rusts from disuse, even so does inaction spoil the intellect. " -- Leonardo da Vinci, architect, artist
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APT
Arbitrage Pricing Theory
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