Question? Discussion points pg 82

Policy packages Copy table top of pg 83

Automatic stabilisers These can work to reduce the impact of the economic cycle without any change in policy. They reduce AD in a boom and increase it in recession. Q – can you think of any?? Tip - think leakages and injections

Are there alternatives? Read pg 83-84 – was they an alternative to austerity?

Comparing alternative approaches Diagram bottom pg 85 – copy and summarise

Evaluating effectiveness Evaluation can at time have political bias Economists tend to look at the economic objective set, and if they were achieved But as economists we must also look at the consequences, what were the costs associated with meeting the objective, some of these as we know are hard to measure

Austerity video What is the real impact of austerity? http://www.bbc.co.uk/programmes/b07qs156