Read Chapter 18 – Issue: The Federal Budget

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Content:

Opening story: Nikki and her dream to build guitars – 843

Introduction to the Issue – 845

Quick Activity: “Your Priorities for the Federal Budget” – 847

Expanding the Models – 860

Shared Tools: Potential GDP and the roles of government – 860

Conservative View: Fewest roles, highest growth, maximum prosperity for all – 864

Liberal View: Expanded roles, moderate growth, highest overall standard of living – 864

Radical View: Most roles, moderate growth, best quality of life – 864

Conventional Theory Tools: Aggregate supply-aggregate demand (AS-AD) graph – 865

Conventional Policies – 868

Conservative Policy: Annual balanced budgets; constrained money supply – 868

Liberal Policy: Adaptable balanced budgets; flexible money supply – 870

Radical Theory Tools: Unsustainable growth and sustainable development – 871

Radical Policy – 876

Radical Policy: Integrated balanced budgets; public banking – 876

Discussion story: Burger King HQ moves to Canada – 880

Understanding the Issue – 882

Exercise 18.1: Office Break Room Fill-in-the-Blank – 888

Voices on the Federal Budget – 897

• Conservative: Voice, Summary, Talking Points – 898

• Radical: Voice, Summary, Talking Points – 905

• Liberal: Voice, Summary, Talking Points – 912

The Shared Outcome – 919

Three-in-One Activity: “Reduce-the-Deficit Challenge” – 920

Re-Vote – 929

Test Yourself, Key Terms, Answer Key – 929