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Rev. 05/09/19
Lesson 1 Evaluation: Guns or Butter
EVALUATE
Directions: You're the president of the United States. You have a $100 billion budget for the programs
below. You need to spend all the money and distribute it between all six government departments. Use
percentages adding up to 100% to complete the empty pie chart.
Guns or butter is a macroeconomics term. The term represents the dilemma of a country
having to decide between guns (invest in defense/military) or butter (invest in production of
goods), or a combination of both. You will examine macroeconomics more in future credits.