Omar Case

In: Other Topics

Submitted By joga1234
Words 437
Pages 2
Economics IAs

1st one –

Like always, first start off by explaining the article and repeating the most important aspects. You should also cite the article if you have the possibility. In this case just repeat, “ Spanish unemployment has hit record high” and stuff. Then go into explaining how the unemployment is cyclical unemployment. Because the state is “in debt”, that state of the economy caused greater availability of workers than there are jobs for workers. You can show the typical cyclical unemployment diagram and just explain it to the situation. Then because you have to talk about the effect of the unemployment, I would talk about the decrease in retail sales. It is the easiest one and still good to explain. Because of the unemployment and people’s incomes decreased r they have no fixed income, they will not be willing to go out and buy more stuff so the demand for products (usually luxury goods) will decrease because you only demand them when you have a higher income. So because of the cyclical unemployment, the demand of retail prices decreased as well (“Spanish retail sales were down 3.7%”). You can make your second diagram showing that it’s really easy. The entire Keynesian theory is based on the fact that unemployment results from insufficient effective demand for goods and services in an economy. So because of the lack of demand, the unemployment will also be pulled down (but just from the Keynesian theory! Not the new classical. If you don’t know much about them then leave this out). So then just talk about the consequences in general of the unemployment. One is a decline in the standard of living. And also because people without jobs will desperately want any job, structural unemployment will build (which could be a waste of talent).

2nd one –

Again just repeat most important points and cite. You should also define the word “monopoly” and…...

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