1. Question?
Discussion points pg 82

2. Policy packages
Copy table top of pg 83

3. 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

4. Are there alternatives?
Read pg – was they an alternative to austerity?

5. Comparing alternative approaches
Diagram bottom pg 85 – copy and summarise

6. 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

7. Austerity video
What is the real impact of austerity?