Government spending can be used to increase aggregate demand and stimulate economic growth.

Government expenditure refers to the total amount of money the government spends on goods and services.

Government consumption refers to the government's spending on goods and services that are directly consumed by the public.

Government revenue refers to the total amount of money the government receives from taxes and other sources.

A budget deficit occurs when the government spends more money than it receives in revenue.

Government debt refers to the total amount of money the government owes to its creditors.

Monetary policy is used to control the money supply and interest rates in order to stabilize prices.

The inflation target is the central bank's goal for the rate of inflation.

Open market operations, reserve requirements, and the discount rate are all tools that the central bank uses to implement monetary policy.

Open market operations refer to the central bank's purchase or sale of government bonds in the open market.

Reserve requirements refer to the central bank's requirement that banks hold a certain percentage of their deposits in reserve.

The discount rate is the interest rate that the central bank charges banks for loans.

Quantitative easing is the central bank's policy of buying large quantities of government bonds and other assets in order to increase the money supply.

Government spending can lead to inflation, crowding out, and budget deficits.

Monetary policy can lead to inflation, deflation, and financial instability.