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
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