The Government and the Economy

The Government & The Economy How does the Government get most of its money?

The Government & The Economy The government ________, __________, and __________ to influence economic activity. taxes borrows spends

The Government & The Economy When the government ___________ taxes, it reduces the funds available for private and business spending. This means there is ______ to spend. increases less

The Government & The Economy When the government ___________ taxes, it increases the funds available for private and business spending. This means there is ______ to spend. decreases more

The Government & The Economy When the government borrows more money, it _____________ funds available for borrowing by individuals and businesses. This means there is ______ to borrow. decreases less

The Government & The Economy When the government borrows less money, it _____________ funds available for borrowing by individuals and businesses. This means there is ______ to borrow. increases more

The Government & The Economy When the government spends more money, demand ___________, which may ____________ employment and production. This means people have _______ money to spend. Businesses now need to hire _______ workers and produce _______ stuff. increases increase more more more

The Government & The Economy When the government spends less money, demand _____________, which may result in a __________ of the economy. This means people have _______ money to spend. Businesses now need _______ workers and produce _______ stuff. decreases slowing less fewer less

The Government & The Economy Increased government spending may result in __________ taxes. higher

The Government & The Economy Decreased government spending may result in __________ taxes. lower

The Government & The Economy The _____ Amendment to the Constitution of the United States of America authorizes Congress to tax income (personal and business)

The Government & The Economy Lets Complete the Processing Activity Together