1. Coping with Economic Challenges
Miss Smith
7th Grade Civics
*pgs

2. 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 _____

3. 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

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

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

6. 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

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