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It is true that higher government expenditure will temporarily boost both the overall level of output and the overall price level.

The net price is the price that consumers are willing to pay for a good or service. It includes all taxes and discounts that were applied in addition to the product's listed price. In a region where the sales tax is 7%, for example, a product with a $100 list price will cost an extra $7 because 7% of $100 equals $7. The remaining total or difference after accounting for two or more variables is referred to as the net value. It is frequently used in economics to denote the value that is still present following a certain, well-known deduction. The term gross, which refers to the pre-deduction value, is occasionally used in opposition to net.

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