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The Government and the Economy

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Presentation on theme: "The Government and the Economy"— Presentation transcript:

1 The Government and the Economy

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

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

4 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

5 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

6 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

7 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

8 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

9 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

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

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

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

13 The Government & The Economy
Lets Complete the Processing Activity Together


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