MAEC "Spain's Economy" by KC Anne Styles https://padlet.com/kcanne0817/maecspain KC Anne, Kristina, Olivia, Yi Han and Marcus's group. en-us 2016-12-25 16:35:52 UTC 2017-01-24 03:58:26 UTC hello@padlet.com Business Cycles kcanne0817 https://padlet.com/kcanne0817/maecspain/wish/144809099 A business cycle is alternating periods of economic growth and economic decline, which can be measure in changes in real Gross Domestic Product(GDP).

An expansion or a recovery is a business cycle where the real GDP increases, unemployment rates fall, business profits improves and production capacity is more utilized. In an expansion. there is inflationary pressure as the price level increases.

Spain is going through an expansion as their GDP increases by 0.7%. Although this is peculiar since Spain is going through a political reform and has barely no government, this adheres to the Classical thinking where Adam Smith believed that no government intervention is needed as the economy will recover on it's own. Supply creates its own demand and recessions naturally cure themselves.
]]> 2016-12-27 05:36:03 UTC https://padlet.com/kcanne0817/maecspain/wish/144809099 Unemployment kcanne0817 https://padlet.com/kcanne0817/maecspain/wish/144809123 Unemployed refers to anyone aged 15 years old and above who is willing and able to work and is actively seeking for employment buy has not found one yet.
Since Spain has just gone through a recession, there is Cyclical unemployment rate at play here.
Cyclical unemployment is caused by the lack of jobs due to a recession (i.e retrenchment). Along with other types of unemployment under the Natural rate of unemployment (Structural, Frictional, Seasonal), the Spanish government is intervening to reduce the unemployment.

The Spanish government is providing training and workforce development, which improves the overall employ-ability of the Spanish people. With upgraded skills, Structural unemployment can be reduced because now, there will be less mismatch of skills.

]]> 2016-12-27 05:38:25 UTC https://padlet.com/kcanne0817/maecspain/wish/144809123 Inflation tinana https://padlet.com/kcanne0817/maecspain/wish/144844346 Inflation refers to a sustained and continuous increase in the general level of prices of goods and services in the economy.
Purchasing power is the real tangible goods and intangible services that the dollar can buy.
Inflation however, erodes the purchasing power of money.

Funcas believes that Spain will have an average annual inflation rate of 1.5% in 2017 due to factors like an increase in the price of oil.

What Funcas believes is called cost-push inflation. Cost-push inflation is one of the two types of causes of inflation. This means that the primary reason of inflation is the increase in the cost of production (for example, crude oil).]]> 2016-12-28 13:10:53 UTC https://padlet.com/kcanne0817/maecspain/wish/144844346 Employment mljl140196 https://padlet.com/kcanne0817/maecspain/wish/144932111 An employed person is defined as anyone that is aged 15 years or over who has completed at least one hour of work with wages or at least 15 hours per week as an unpaid worker in a family business.

It is not an easy task bringing a country to full employment. Governments around the world are scratching their heads on how to compete with other countries to increase employment or decrease unemployment. This is because employment and unemployment are the driving forces behind economic growth and stagnation.

The recent surges in tourism has helped to significantly decrease the unemployment rate of Spain by creating almost 84,000 jobs. This may seem like Spains economy is taking a recovery in its economy. However , the tourism industry will not always experience a surge . It is based on seasonal periods. Therefore , it is difficult to always maintain a surge in tourism throughout the year. If the numbers of tourism starts to decline , the jobs that are created because of the surge in tourism would be lost and unemployment rates may fall back to what it was before .

Hence , even though tourism plays a huge role in improving unemployment statistics , it is not a constant affair.


]]> 2017-01-01 12:05:04 UTC https://padlet.com/kcanne0817/maecspain/wish/144932111 Fiscal Policy - For Spain to get out of recession, they will need to increase taxes and reduce government spending (Austerity measures - reduce spending on unemployment benefits, free health care and free education, pension). For IMF and EU to "forgive" or to "write-off" the loans. kcanne0817 https://padlet.com/kcanne0817/maecspain/wish/146161679 2017-01-10 05:34:23 UTC https://padlet.com/kcanne0817/maecspain/wish/146161679