Please enable JavaScript.
Coggle requires JavaScript to display documents.
New Infrastructure Projects e.g. HS2 (Govt investment (AD rises,…
New Infrastructure Projects e.g. HS2
Govt investment
AD rises
Multiplier set off
Improves S side
Boost LRAS
Shifts out PPF
Higher national productivity
GDP growth results
Externalities
Negative Production externality in building phase
Positive Consumption externality of reduced congestion
habitats destroyed, noise created etc.
Impacts house prices
Affects local business
Industry impact
Boost to construction industry
Boosts worker productivity
Takes workers from other projects
Regional multiplier local business benefits
Reduces other business costs e.g. logistics
Higher taxes payable
Government finances
Higher initial Govt spending
May lead to higher taxes
May mean higher PSNB and National Debt
Long term may generate higher firms profits / corporation tax