The Government and the Economy The Government The

The Government and the Economy

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

The Government & The Economy The government ____, taxes _____, borrows and _____ spends to influence economic activity.

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

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

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

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

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

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

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

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

The Government & The Economy th The _____ 16 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