Sample Assignment on Economics PDF

Running head: ECONOMICS ASSIGNMENT
Economics assignment
Name of the student
Name of the university
Author note

1ECONOMICS ASSIGNMENT
Table of contents
Introduction................................................................................................................................2
Macroeconomic challenges faced by country in long term.......................................................3
Cause of the problem.................................................................................................................4
Impacts on economy and society...............................................................................................6
Policies by government to solve the probe................................................................................8
Conclusion..................................................................................................................................9
Reference list............................................................................................................................11

2ECONOMICS ASSIGNMENT
Introduction
The article states about the unemployment rate of Spain which feel to a nine year low
in the third quarter. The rate of joblessness declined to 16.4 percent in the last three months
of the year 2017. With increase in hiring in the construction, industry and services, the rate of
growth of unemployment have fallen down to a nine year low. Spain had experienced a
constitutional crisis in the year 2017, which is termed as Catalan crisis. In case of Catalan
crisis, there had been an ongoing political conflict which took place between the government
of Spain and the government of Catalan. It took place over the issue of Catalan independence.
The joblessness have increased to 26% few years ago. Spain had been experiencing nearly
the highest level of unemployment in the developed world. The youth unemployment is also
higher and had been at 42%. There had been many factors which had suppress the labor
market in Spain. Spain have also experienced a negative growth of the gross domestic
product until 2013 (Ruiz, Stupariu and Vilariño 2015). The major reasons behind the
mounting rate of unemployment are shaky foundations of the economic model, rigid labor
markets, banking crisis and corruption, crisis in the education system and increased in the
flow of immigrants. Unemployment had been one of the major problems in Spain and it is
higher than in other western European countries. Due to the economic crisis which took place
in 2012 and 2013, the rate of unemployment had rose even higher. Spain had also known to
have faced one of the highest rate of unemployment in the European Union. When compared
to the other OECD countries, it still suffered from the highest unemployment rates. In the
recent years Spain have also known to have shed around 203,000 jobs. The job creation has
also experienced the worst in the month of august 2008. The paper will mainly focus on the
financial crisis of which Spain had suffered from 2008 to 2014. This financial crisis is even
referred to be the “Great Recession” in Spain. In this situation, Spain had a debt crisis when
the country was not able to bail out its financial sector. The paper will also state about the

3ECONOMICS ASSIGNMENT
SAS
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REAL GDPREAL GDP
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weaken growth model of Spain leading to crisis, the consequence of the banking
intermediation in a tentative bubble and the effects of extrinsic disequilibrium.
Figure 1Long run and short run aggregate supply
In case of long run aggregate supply, there is a net change in the Potential GDP due to
change in the aggregate labour hours and change in the labour productivity.
In case of short run aggregate supply, there is also change in the potential GDP and in
the cost of production. The diagram also shows the change in wages, resource pric and
government polices.
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