Which economic factor is most influencial?

Question

okay i remember learning in economics class that consumer confidence, government spending, and exports help stimulate the economy and taxes and imports slow down the economy... is this correct?

I remember consumer confidence playing the biggest role or am i wrong?


Thanks

Anonymous · Accepted Answer

Yes, consumer confidence has made the Keynesian model collapsed more than sticky price and wage. In Europe, they don't go to stimulus package immediately,because people will get panicked. Because  the government has no financial discipline, the consumers will not spend the money anyway. So the multiplier effect is dull. It has to go to discipline,means austerity, first.

Anonymous · Answer

The school that taught you that taught you liberal economics so there wrong, the most influential economic factor is producing, less taxes and less spending and let the free market produce and the consumer will decide what stays in business and what doesn't

Sipra M · Answer

It is partly correct as as all to be combined and applied according to the situation requirement. But one thing is 100% true that consumer confidence and strong, Intelligent and stable Govt. can do better for the economy.

? · Answer

GDP figures

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Which economic factor is most influencial?

4 Answers