short run and long run econ policy effect

8/10/22, 4:28 AM Topic: Short run effects of economic policies - Spain

https://seattleu.instructure.com/groups/295536/discussion_topics/7981697?module_item_id=17583856 1/2

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Short run effects of economic policies - Spain From ECON 3130 01

This activity has two parts. First, you will work with a group and study a certain country’s economic performance around the 2008 financial crisis. The group you are assigned to is noted above. Focus your discussion around the questions I have posed below.

The second part of the activity is an individual assignment where 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. Determine which country you have to analyze (US, Spain, Greece, Japan, Colombia).

2. Go to the World Bank database (https://data.worldbank.org/) or any other reputable database.

3. Find 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. Use this discussion board to discuss with your group the situation of the country in the years around the crisis paying attention to the above four variables.

5. Still using this discussion board, discuss with your group the pros and cons of performing the following policies once the crisis hits the country. Focus only on short run effects!

Contractionary fiscal policy combined with expansionary monetary. Expansionary fiscal policy and expansionary monetary policy.

6. The final part is an individual assignment. Please write a one page report on which of the two policies would be better for the country you studied. Submit your paper to the short run assignment.

8/10/22, 4:28 AM Topic: Short run effects of economic policies - Spain

https://seattleu.instructure.com/groups/295536/discussion_topics/7981697?module_item_id=17583856 2/2

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