How Has Federal Government Spending Changed?
They review the definitions of government purchases and transfer payments and categorize the listed expenditures. Finally, given Federal government budget data, they draw graphs of the relative importance of different types of spending in the budget to discern the pattern of change and its significance. • Unit 3: Lesson 6 – How Can Changes in the Federal Government’s Budget Stabilize the Economy? The teacher discusses with the class how a market economy like that of the United States goes through the Business Cycle of unstable swings in economic activity. The students then write and perform a three-act skit which illustrates how the level of income and spending in an economy can fall, and how intentional fiscal policy changes in the spending and taxing levels of government result in a multiple impact on the economy. The class discusses how the federal government can try to stabilize the Business Cycle, using fiscal policies recommended by John Maynard Keynes in the 1930’s, and accepted
