Principles of Macroeconomics: "Chapter 12, Section 1: Government and the Economy"

Read this section, which elaborates on the major components of government spending and the sources of government revenue. You will also learn about the terms budget surplus, budget deficit, balanced budget, and national debt. As you read, note the trends in the US government's budget over time. Lastly, attempt the "Try It" exercises at the end of the section.