Pros and cons of boosting AD through consumption by Lotta https://padlet.com/LottaTG/AD What policies and dynamics affect consumption? Why/why not try to influence consumption? How effective are consumption policy tools? What other economic policies could be complementary or important? en-us 2016-11-10 10:13:09 UTC 2018-04-09 20:56:53 UTC hello@padlet.com Instructions LottaTG https://padlet.com/LottaTG/AD/wish/136677944 Your team should create 1 post-it note.
1) consider the pros of consumption led demand
2) consider the cons of consumption led demand]]> 2016-11-10 11:14:05 UTC https://padlet.com/LottaTG/AD/wish/136677944 Suggestions LottaTG https://padlet.com/LottaTG/AD/wish/136678091 Include at least 5 bullet points in each post it note.
- Consider how consumption compares with other components of demand, other policies?
- how effective or feasible is it to focus on consumption?
- think of examples where boosting C is or is not useful/easy/possible?]]> 2016-11-10 11:14:55 UTC https://padlet.com/LottaTG/AD/wish/136678091 Team 1  pippa_hix https://padlet.com/LottaTG/AD/wish/136761440 Consumption Vs Investment 
 
Lowering taxes
Combining subsidies 
Increasing employment 
Quantitive easing
Reducing interest rates
 
 
Investment 
Subsidies 
de valuation of exchange rate
investment incentives for bonds and guilts 


]]> 2016-11-10 15:27:30 UTC https://padlet.com/LottaTG/AD/wish/136761440 Team 3 https://padlet.com/LottaTG/AD/wish/136761892 C vs (X - I] 

Too many X's not enough C's
Fiscal policy stimulation for higher C's
Monetary Policy is bad at stimulating economic growth in rural areas ]]> 2016-11-10 15:28:18 UTC https://padlet.com/LottaTG/AD/wish/136761892 Team 4 https://padlet.com/LottaTG/AD/wish/136761897 -More consumption leads to more production which leads to an increase in economy (US/UK/China)
-brings more money into the system
-green consumption
-investment can be dependent on consumption
-knock-on effect of consumption on production
Policies
-lower taxes (income tax/VAT)
-reduce interest rates/lower credit policy
-subsidies
-tax free zones

]]> 2016-11-10 15:28:18 UTC https://padlet.com/LottaTG/AD/wish/136761897 TEAM 2 barrylawbarry https://padlet.com/LottaTG/AD/wish/136763075  Increase c can increase AD, this is because of it is a component of AD. CONSUMPTION IS CLOSELY RELATED TO THE GROWTH RATE IN GDP due to the trend overserved from the graph.


To boost consumption


  1. lowering the VAT 
  2. increase minimum wage, change the structure of the economy
  3. increase subsidies
  4. reduce interest rate, 
  5. allow customers to pay for their goods in instalments
  6. infrastructures, government spending on healthcare services and education 
  7. lower income tax and corporate tax for services and firms, small 
  8. tax on unhealthy goods
  9. import tax, share tax
  10. reduce the unemployment benefit

^____^
]]> 2016-11-10 15:30:20 UTC https://padlet.com/LottaTG/AD/wish/136763075 Team 5 https://padlet.com/LottaTG/AD/wish/136765375 Consumption:
- Reduce taxes (VAT)
- Issues with consumers' confidence
- Reduced interest rates
- Increasing national minimum wage (ST)

Government:
- Easier to borrow
- Infrastructure (roads -> negative externalities)
- Healthcare, education -> multipler effect
- Subsidies boosts growth]]> 2016-11-10 15:34:36 UTC https://padlet.com/LottaTG/AD/wish/136765375