Economic Activities In America's economy, there are different activities that will affect the government, households, and businesses in our economy. Some of the key activities are purchasing groceries that is a daily activity for most Americans; another example would be a massive layoff and a decrease in taxes. I will start with purchasing groceries; the amount of groceries that are purchased from a retailer will have an effect on businesses. The stores survival is based on getting consumers to spend money so they may stay in business and outperform their competitors. When consumers purchase groceries this affect, the government due to the taxes included in the prices that could impose a limit a person may purchase. Tracking consumers spending habits can help the government determined if the economy is strong or headed toward a recession. The groceries consumers purchase were produced on farms, which means a farmer or a company sold a product for themselves or a business that paid taxes on the revenue received. A company or farmer must pay taxes for equipment and products that are being used to produce their product and for employees. A consumer not only pays for the product they receive but government taxes.
Massive layoffs of employees can have negative effects, not only on the company and individuals but also the government. When a company or business must lay off employees, this affects the economy due to the fact individuals will have less household income to spend in the economy. The past employer along with the government will have to pay unemployment benefits to the laid off employees. When the government and companies pay unemployment benefits to the mass of past employees, revenue is being lost, and the government may consider raising taxes as an option. Massive layoffs can hinder a business production by slowing down production resulting in missing