This student text and teacher's guide examine the government's role in the U.S. economy and how the choices made by the government affect each citizen. The following topics are addressed: (1) why government gets involved in the economy and the social and economic goals the government tries to achieve; (2) how government monetary, fiscal, and trade policies affect the economy; (3) how the federal government raises and spends money and the process by which Congress and the President set the nation's financial priorities as they prepare the federal budget; and (4) how the federal budget and U.S. trade deficits affect the economy. The student text includes a glossary of relevant terms and contains a list of books and articles for further reading. The teacher's guide offers classroom activities and handouts to promote active learning and enhance student understanding of the material covered in each chapter of the student text. The activities require students to conduct independent research, evaluate, analyze, and speculate on how the U.S. economy will perform in the future. (BT)