12Eco 8 August by Helen Rowe https://padlet.com/helen_rowe/j2x6cjh7uchn Direct Effect and Indirect Effects en-us 2016-08-08 02:05:17 UTC 2016-08-11 09:04:11 UTC hello@padlet.com JARED & talya https://padlet.com/helen_rowe/j2x6cjh7uchn/wish/117681263 New employment legislation has meant that employees wages have decreased. This will decrease household's disposable income.
This will cause consumption (C) to decrease as it is less affordable. This will cause producers revenue to decrease due to decreased consumption.
As disposable income decreases, households will become more dependent on transfer payments (Tr) from the government.
]]> 2016-08-08 02:08:20 UTC https://padlet.com/helen_rowe/j2x6cjh7uchn/wish/117681263 Almanzo https://padlet.com/helen_rowe/j2x6cjh7uchn/wish/117682744 The direct impact on the household sector is that the cost of borrowing increases . Thererfore households will not be able to afford as much goods and services, as a greater   amount of their disposable income will be spent on repaying mortagages etc (which  has increased from higher interest rates)  The flow on effect will be that households will purchase less goods and services, as a greater portion of their disposable income will be spent of mortages etc, so consumption spending (C) will decrease. THis negatively effects the producer sector because their revenue will decrease consequently, decreasing Producers profits. The other flow on effect will be that as the reward for savings increases, households will chose to save more of their disposable income then spend it on goods and services (consumption), because the reutrn on investment is greater. Therefore the financial sector will see an increase in investment.]]> 2016-08-08 02:26:04 UTC https://padlet.com/helen_rowe/j2x6cjh7uchn/wish/117682744 Kyla https://padlet.com/helen_rowe/j2x6cjh7uchn/wish/117932554 The direct impact on the producer sector will be an increase in costs of production as the producers increase production to keep up with the increased demand for steel in America. This will cause costs of production, but because of increased demand, producers profit margins will only decrease a little or stay the same. 
As demand increases, there will be more taxes on production (IT) being paid to the government increasing the money flow from the producer to the government sector.
Also as demand increases, and producers increase their production, there will be an increase in export receipts (X) as more steel is exported to America to keep up with their increased demand. This increases the money flow X from the overseas sector to the firm sector]]> 2016-08-10 20:36:09 UTC https://padlet.com/helen_rowe/j2x6cjh7uchn/wish/117932554 Alaska & Peter https://padlet.com/helen_rowe/j2x6cjh7uchn/wish/117939401 -          The direct impact on the producer sector is that the firms that are in the tourism industry will see an increase in export receipts, due to the higher volume of tourists in NZ and increased overseas demand, so there will be higher demand for their products.  Overall, the producer sector will have higher profits.
-          The flow on effects for households is that they will likely experience an increase in their incomes.  The effect on government is that they will collect more tax from the increase in business profits.
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