Coping with Economic Challenges Miss Smith 7th Grade Civics *pgs. 538-541

Causes of Economic Problems If _____ aren’t increasing with ________, workers must ______ their standard of ______ If consumers spend ____, business make ____ profit and the produce ____ This can result in people ______ their jobs Unemployed people can’t pay _____

The Money Supply Too much money in ___________ can cause ________ This causes prices to ____ Businesses that expand too ____ and produce too many _____ than they can sell can cause them to ____ money

Government Spending Gov. spending money mostly comes from _____ and borrowed _____ This puts more _____ into circulation Also causing ________

Productivity The amount a worker ________ per _____ Rising productivity = _______ wages and profits and ______ prices Recently, American productivity has ______

Government’s Response to Economic Problems ________ policy- federal government’s policy (rule or ________ of ______) of taxing and spending An impending recession may result in lower _____ _________ policy- federal government’s policy regarding money

Other Ways to Help the Economy _______ Government Spending Increase ______ Buy ________-____ Products Increase ___________