Cause and Effect (Steve Class) Tue 26/08/08

Exercise 5 Study the flow chart and complete the paragraph which describes it.

If a country is suffering from economic recession, the government can reduce taxation so people in country will have more money to spend and buy more goods and services. As the spending and buying increased, more jobs are created to satisfy for demand. Consequently, the city will have the lower unemployment. Owing to the higher employment the government will has a higher income from taxation and spends less on social security.