4 Governments pay for the goods they buy and for the transfer payments they make mostly by collecting taxes, including personal income taxes, property taxes, social insurance taxes, and sales taxes. Over 60% of the government revenue in the U. S. is collected by the federal government. This does not include taxes collected by state and city governments.
5 Every market economy suffers from business cycles. Governments, through their control of taxes and government spending and through their ability to control the quantity of money, often attempt to modify fluctuations in the business cycle. For instance, the government may reduce taxes in a recessionin the hope that people will increase spending and thus raise the GNP.
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27 Governments regulate economic behavior, and the regulations .
28 Besides buying and producing services, governments also .
29 The government revenue in the U. S. is collected by the federal government and .
30 The government may reduce taxes in a recession in order to
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