The Student Text and Teacher's Guide examine the government's role in the U.S. economy and how the choices made by the government in Washington affect each individual. The student text is divided into four chapters. Chapter 1, "Government's Role in the Economy," discusses why government gets involved in the economy and examines the social and economic goals the government tries to achieve. Chapter 2, "How Government Affects the Economy," focuses on how government monetary, fiscal, and trade policies affect the economy. Chapter 3, "The Federal Budget and the Economy," presents 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. Chapter 4, "Today's Choices, Tomorrow's Legacies," concludes with the federal budget and U.S. trade deficits and how these affect the economy. A glossary of economic terms and a 48-item further reading list conclude the book. The Teacher's Guide offers classroom activities and handouts to promote active learning and enhance student understanding of the materials covered in each chapter of the student text. Students also conduct research and process information about the future of economic policy. The guide also provides unit tests and answer keys to assist in developing comprhensive lesson plans or units of study. The Teacher's Guide is divided into four units corresponding to the chapters of the student text. (EH)