Spain 'in huge crisis' as unemployment hits record levels - Telegraph - 3 views
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Erica Nozawa on 31 May 12This suggests Spain's involvement in the Euro crisis, and how unemployment rose as a result.
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'Record unemployment' gives us an idea of the magnitude of the impact the euro crisis had on Spain. I could discuss the type of unemployment and what could be done to improve the situation. In this case, the type of unemployment would be cyclical, as it occurs partly as a result of the business cycle.
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Consumer spending is one of the key factors of macroeconomics. Consumer spending could have dropped partly because of the increasing unemployment rate, causing consumers to hold off spending. This means a drop in demand, thus a drop in supply, a decline in GDP, the shifting inwards on the PPF curve, the increase in government spending to pay for unemployment benefit, thus an increase in deficit, and in some cases the outset of deflation.
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