8/10/22, 4:30 AM Topic: Long run effects of economic policies – Spain
https://seattleu.instructure.com/groups/295536/discussion_topics/7981698?module_item_id=17583864 1/2
Long run effects of economic policies – Spain
From ECON 3130 01
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This activity is similar to the short run activity we did last week however now you will focus on the
difference between short-run and long-run effects. You will study the same country as last week.
Again, this activity has two parts. First, work with your group and discuss the questions I have
posed below. Then, in an individual assignment, each of you will write a one page report on which
of the two policies would be better for the country you studied.
Assignment Details
1. You will analyze the same country as you did last week.
2. Go to the World Bank database (https://data.worldbank.org/) (https://data.worldbank.org/)
or any other reputable database.
3. Review again the information about your country in the window of a few years before 2008 and
a few years after 2008 on the following variables:
GDP per capita (constant 2010 US$)
Unemployment, total (% of total labor force) (modeled ILO estimate)
Real interest rate (%)
Deficit (Net lending (+) / net borrowing (-) (% of GDP))
4. On this discussion board, discuss with your group the pros and cons of performing the
following policies once the crisis hits the country. Focus on the long run and how it differs from
the short run.
Contractionary fiscal policy combined with expansionary monetary policy.
Expansionary fiscal policy and expansionary monetary policy.
4. Write a one page report on your findings and submit it to the long run effects assignment.
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8/10/22, 4:30 AM Topic: Long run effects of economic policies – Spain
https://seattleu.instructure.com/groups/295536/discussion_topics/7981698?module_item_id=17583864 2/2
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