short run and long run econ policy effect

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

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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.

https://seattleu.instructure.com/courses/1603892

https://data.worldbank.org/

https://seattleu.instructure.com/courses/1603892/assignments/7032950

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

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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 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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https://seattleu.instructure.com/courses/1603892

https://data.worldbank.org/

https://data.worldbank.org/

https://seattleu.instructure.com/courses/1603892/assignments/7032945

8/10/22, 4:30 AM Topic: Long run effects of economic policies – Spain

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