The output of the resident is concerned with the products made in the economy during a period of time. The government uses an expansionary model like reducing the market interest rate, purchasing governmental bonds, making expenditures on governmental activities, and more. These expansionary models increase the supply of money in the economy. The purchasing power of the people increases. This increases their demand for goods and services. The increase in demand causes prices to increase. The increased prices motivate new sellers and manufacturers in the market. The injection of new producers results in an increase in the overall output of the goods and services.