Government Finances

Government funding and spending are very important aspects of a nation’s economy. Throughout this topic, you will learn how the government uses taxation to help fund the economy and to provide public goods and services. You will also examine the tools the government uses to manage its budget and to control the amount of money circulating in society.

Essential Questions

• Why do the state and federal governments impose taxes?
  
• What types of taxes do the state and federal governments collect?
  
• How and why does the government provide particular goods and services to the public?
• What types of public goods and services are provided by the government?
• How do fiscal and monetary policies impact the economy?