AAAE Certified Member (CM) Module 4 Practice Test

Economic impact is assessed in stages: the direct spending by the airport and the additional spending by its suppliers create the immediate, local activity. Those two parts—the direct and the indirect effects—together form the primary economic impact, capturing the initial footprint of airport operations in the regional economy. The remaining effect, induced, comes from how wages paid to local workers are spent in the area and is usually added to form the total economic impact. So the direct and indirect components are the primary portion, with induced effects expanding that total.