Economics for Global Decision Makers

Question: Discuss about economics for global decision makers. Answer: It is a well-written and well-explained post. The business cycle phase of Spain in the year 2013 showed positive signs after the country was hit badly by the global financial crisis of 2009. The global meltdown eventually resulted in the Eurozone Crisis in the coming years. National debt was high and the there were no signs of getting a refinance from the global forum (Burgen 2015). In such a state, Spain along with Portugal, Ireland, Greece and other European countries were unable to repay their debt obligations. In such a situation, the economy of Spain coped up a little in 2013. The result can be found in its Real GDP growth rate that decreased from a -2% to -1.7%. A 0.3% decrease in such a situation is of great importance. The second answer is commendable as it clearly explains the real GDP demand and the state of consumption during the year. Consumption and propensity to consume declined during the year as unemployment rate increased. People of the country lost jobs due to the condition of the economy (Europa.eu 2016). This resulted in a decrease in the disposable income that people used to have. As a result, of unemployment, industrial production was hampered that affected the net GDP of the country. Investment activities and industrial production rate has been linked nicely and the nexus between them has been brought out in a commendable manner. Employment rate and labour force participation rate has been explained very well. The calculations have been shown in a simple manner that can be understood by everyone. Data from both the years have been used in an impeccable manner to bring out the changes and the effect of changes on the economy of the country (focus-economics.com 2016). The impact of unemployment and the labour force participation rate on the real GDP in the year has an effect on the performance of the entire European economy. In question number six, the explanation provided is apt and sufficient to have a clear idea about the strength of currency of Spain. The impact of negative inflation or deflation on the purchasing power of the currency, linked with unemployment rate of the country has been explained in a proper manner. The calculations support the assertions made in explaining the answer. The relation between export and the fall in price of commodities in the domestic market along with its impact on the disposable income of the people has been indicated in the first part of the answer (the Guardian 2016). However, this portion required a little bit more elucidation. The demand and supply function has been hinted in this answer. Inflation rate does affect demand and prices of commodities. A positive attitude of the people has been indicated. The tendency of the people to save their limited income shows a positive sign. In this manner, savings can be channelized into suitable investment opportunities. Saving intentions along with spending pattern determines capital market participation. References Burgen, S. (2015).Growth up, joblessness falling is Spain's crisis finally over?. [online] the Guardian. Available at: https://www.theguardian.com/world/2015/mar/26/bank-of-spain-economic-recovery-accelerating [Accessed 5 Jun. 2016]. Europa.eu. (2016).EUROPA - Documents and publications. [online] Available at: https://europa.eu/publications/index_en.htm [Accessed 5 Jun. 2016]. focus-economics.com. (2016).Spain Economic Outlook. [online] Available at: https://www.focus-economics.com/countries/spain [Accessed 5 Jun. 2016]. the Guardian. (2016).Eurozone crisis | Business | The Guardian. [online] Available at: https://www.theguardian.com/business/debt-crisis [Accessed 5 Jun. 2016]..