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Titlebook: Aggregate Economic Choice; Harland Wm. Whitmore Textbook 1986 Springer-Verlag Berlin Heidelberg 1986 Asia.Finance.business.economy.institu

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Government Activity and Aggregate Economic Choice, used to produce the goods or services purchased by the government. The standard model ignores the usefulness to the private sector of any goods or services which the government provides as a result of these purchases. Consequently it cannot address the factors that affect the private sector’s willingness for the government to engage in spending.
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The Basic Structure,-market mechanisms through which the household sector produces some of its own services and selects the optimal volume of public goods to be produced by the government. Figure 2.1 provides a visual overview of the closed economy as described in this study.
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