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Government uses the cycle of __ to affect economic performance. There are two ways that they can do this- through government spending and taxes. The government will use one or both of these methods to try and change how much money is in the economy, which affects things like inflation rates, unemployment rates, etc. Body: __ is when the government uses government spending and taxes to affect economic performance. There are two ways that they can do this- through government spending and taxes. The government will use one or both of these methods to try and change how much money is in the economy, which affects things like inflation rates, unemployment rates, etc. Government spends by putting more money into circulation (besides other possible means) while taxing mainly takes funds out of circulation. Inflation happens because there’s not as much value per dollar because people have so many dollars but it costs a lot for them to buy anything with those dollars; high employment comes about if jobs are created faster than population growth since then companies are competing for workers instead of employees just rejecting jobs; and unemployment happens when there are more unemployed workers than available jobs. The government can use __ to try and increase the economic performance in any of these areas at different points during the cycle, but it’s not a one-size fits all approach where they know what will work with absolutely certainty since so many factors play into how well an economy performs. Body: Government spends by putting more money into circulation (besides other possible means) while taxing mainly takes funds out of circulation. Inflation happens because there’re not as much value per dollar because people have so many dollars but it costs a lot for them to buy anything with those dollars; high employment comes about if jobs are created faster than population growth since then companies are competing for workers instead of employees just rejecting jobs; and unemployment happens when there’re more unemployed workers than available jobs. The government can use __ to try and increase the economic performance in any of these areas at different points during the cycle, but it’s not a one-size fits all approach where they know what will work with absolutely certainty since so many factors play into how well an economy performs. Please remember to edit this page if you decide to add content! Thank you for reading this post 🙂 -Namita (talk) 01:34, 27 January 2018 (EST) Government Uses the Cycle of Government Spending and Taxes to Affect Economic Performance [ edit ] Economic cycles are events that happen naturally over time because economies have natural