A conditional causal explanation; reveal evaluation nodes to inspect limits.
Government orders additional domestic services.
The order raises G directly, rather than relying on households choosing to spend a tax cut.
Concepts:
Domestic suppliers receive additional orders.
At the original price level, demand rises; firms can respond if usable resources are available.
Concepts:
Firms expand production and hire workers.
With spare capacity, extra output raises derived demand for labour and can reduce cyclical unemployment.
Concepts:
Additional incomes can support consumption.
Recipients spend part of the additional income; saving, taxes and imports limit further domestic demand.
Concepts:
Solid links are the core chain an answer should explain. Dashed violet links are evaluation: points that weaken, delay or qualify a link. Select any node or link label to read its explanation.