Solution to Spain’s Unemployment

As seen in an article on MarketWatch.com, Spain has seen a big rise in unemployment. This has a lot to do with the global recession and is not helping Spain at all. Unemployment could greatly postpone Spain’s recovery from the recession and could do some serious economic damage.

A solution for Spain is to raise aggregate demand. Aggregate demand is the total demand for final goods and services in the economy. As you can see in the graphs below, courtesy of tutor2u.net, if the government can somehow raise the aggregate demand, then we will see a consequent raise in aggregate supply. This means a greater need for output and companies will undoubtedly need more workers. That is why you can also see in the graph that demand for labour will increase.

Growin’ in the USA

The US’s GDP growth rate has been very low since the recession. An article posted on MarketWatch.com stated that the GPD growth rate “has failed to surge into to 7% to 10% range as typically happens after a deep recession.” GDP, a summation of consumption, investment, government spending, and exports minus imports, has seen recent growth due to a rise in the consumption aspect of GDP. Economists have seen a 3.2% increase and hope to see even bigger growth in the near future.

Presentation On The BIG THREE!!!

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World’s Greatest Economy?

After presenting our own ideas on the world’s greatest economy, as well as listening through other people’s presentations, it became very clear that Switzerland was number one. It soared through many economic indicators as number one and proved itself a stable and strong economic country.

mexico

Real GDP for the last decade

1. When looking at Mexico’s Real GDP for the last decade, they lacked the drops that other countries have as a result of the recession. I thought it might have something to do with the drop Mexico had in 1994. In 1994, Mexico had the Mexican Peso Crisis in which there was a sudden devaluation of the peso. This economic crisis may have somehow strengthened their economy in the long run to withstand the recession.

Real GDP per Capita for the last decade

2. Here also, in Mexico’s GDP per Capita, there has been no significant drops. It did begin to plateau in 2001, but they recovered from that in 2004.

3. As seen in the GDP growth rate of Mexico, in the last 16 years, they have had 3 significant drops. The biggest drop they have had on the entire graph happened around 1994 to 1995, again as a result of the big peso deflation crisis. Afterwards, their GD increased by quite a bit and after some fluctuation, in 2000, it had another big drop. The rate almost went negative and Mexico made a slow recovery from the drop. The rate has remained below 5%, since the drop, and the rate has been sinking ever since its recovery.

Reflection on Data Response, Diagrams, and Definitions

My econ paper was fairly disapointing. I was fairly disoriented that day and so when I started answering the questions, I did so with very little thought. I didn’t plan out any of my writing so half way through, I already knew my answers were very disorganized and insufficient.

I need to make sure to, in the future, organize my thoughts after reading the article and make sure my answers are organized.