The government has also introduced drastic spending cuts designed to reduce its debt levels and meet deficit targets agreed with the European Union. These cuts are contributing to Spain's economic contraction.
Even though government expenditure would increase the AD/GDP, which would result in more employment, Spain is being forced to reduce government spending.
S&P predicts the Spanish economy will shrink by 1.5% this year, having previously forecast 0.3% growth.
"We believe that the new government has been front-loading and implementing a comprehensive set of structural reforms, which should support economic growth over the longer term," S&P said.
"In particular, authorities have implemented a comprehensive reform of the Spanish labour market, which we believe could significantly reduce many of the existing structural rigidities and improve the flexibility in wage setting."
It was the first deceleration in a year, but it was not nearly as severe as other setbacks in the last couple of years.
Mitt Romney
insisting that the president has held back the recovery and intends to do further damage.
White House focused on
solid growth in consumer spending and a surge in residential building.
the private sector is continuing to heal from the financial crisis,” said Alan Krueger, chairman of the president’s Council of Economic Advisers.
subsidize the employment of teachers and first responders to emergencies.
Economists initially predicted a much weaker showing in the latest quarter, partly because of a large accumulation of inventories in the fall and winter that needed to be worked off. But in the last few weeks, expectations rose on strong jobs reports and rising consumer confidence.
Consumer spending did turn out to be the major strength
Business investment, which had been a bright spot, declined in the most recent quarter.
Government spending also fell more than anticipated,
thanks in part to a particularly large drop in military outlays.
Consumer savings declined.
decline in business investment.
Businesses spent more on equipment and software but much less on infrastructure.
in construction related to mining, oil and gas, while manufacturers actually increased their spending on factories and office buildings.
another significant slowdown, saying that last year’s hiccup was the result of a series of external shocks, like a spike in gas prices (this year’s was less severe and is already subsiding) and the Japanese earthquake.
Stagnation in Europe and a slowing of China’s breakneck expansion have weakened global demand even as corporate profits have continued to outpace expectations.
I can't comment on the actual article, so here are my points:
-this shows a case of substitute goods that happen to be merit goods. the manufacturer, Philips, has created an eco-friendly lightbulb that will last about 20 years. however, it also has other eco-friendly light bulbs that cost a fraction of the current set price.
-the price is currently quite expensive, but the manufacturer is currently subsidizing the product for customers.
-a diagram of positive consumption externalities can be shown, using the prices mentioned in the article.
Unemployment raises when there is more demand for working because no matter whether there is an increase or decrease in the working labour force, the number of available jobs are limited. Because there is a limited number in the number of jobs, the increase in demand for employment raises the unemployment rate.
The word 'recession' can used to introduce the Keynesian economics with the boom and the busts cycles and monetary and fiscal policies to reduce these cycles.
The report on American jobs added to the global pall that has deepened with Europe’s debt crisis and slowing growth in China and India.
This indicates the influence of America's unemployment rate as well as their economic growth to the other major countries, such as China and India. A increase in America's unemployment rate resulting in a decrease in America's GDP growth has affect on the economy of China and India, such as in exporting goods.
Yields on United States and German government bonds also slumped as investors bid up the bonds’ prices looking for safety.
The decrease in the prices of government bonds in Germany and United States indicates that the citizens dont have the trust to these countries for their skill to return the money with a fixed amount of tax. This is also another indication for the economy not doing well.
The underlying pace of the domestic economy is a slog, driven by manufacturing and restrained by slackening global demand.
The economic policies which President Obama used can be described thoroughly in this section, such as fiscal and monetary and their success.
The May jobs report showed gains in health care, transportation and warehousing, and wholesale trade, while construction jobs fell by a seasonally adjusted 28,000. Even some bright spots, like booming auto sales, failed to meet expectations or to bolster manufacturing employment by much — only 12,000 jobs.
This implies structural unemployment, which is the kind when unemployment is caused due to change in structure, such as applying machinery as to human beings.
As well as drawing the season unemployment graph, an explanation as to how seasonal unemployment is caused can be described. The causes of seasonal unemployment needs to be related to the increase in unemployment rate in USA between last Winter and May.
A graph indicating the consequences of decrease in consumer confidence and how it shifts AD to the left can be shown through a graph. Increase in demand for a higher price of unemployment benefits can be drawn on a graph illustrating the impact on GDP. A brief explanation of consumer confidence and the basic components of GDP should be mentioned and explained.