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In order to achieve economic health, a country must achieve the ofur

macroeconomics objctives which are full employment, low inflation,


economic growth, and income distribution, whose stimulate simultaneously.
More specifically, full employment, which is the point of the economy where
everyone who i sable and willing to work is able to fin done, to get at a full
employment level, a country should reduce employment.
At the end of the first quarter of this ear Spains unemployment rate was
23,78%, which by goverment intervention by the creation of thousands of
new Jobs. As a result of this the rate was sharply reduced in this quarter by
1,4 points, to 22,7%, reducing the Natural Rte of unemployment.
The actual goverment increased the Aggregate supply of labour in order to
reduce the aggregate demand, even though Spains total labour forc is far
from the actual reached rates.
In this diagrams its showed, how is the abour forc market diagram the
(ASL) Aggregate supply of labour, is shifted outwards, increasing the
quantity of labour by 295,600 people. This has a direct effect in the
aggregate supply demand diagram because if the aggregate supply of
labour forc shift outwards it so does the short run aggregate supply in the
country creating economic growth and a supply side deflation in the
economy which is a decrease in the average Price level, it can cause a
worsening in a recession but for an economy as an Spains one it does not
happens.
Nowadays Spain is getting it recovery that started in 2013 for the recession
that started in 2008 as the article says Never in Spains Economic history
have so many Jobs been created in a single quarter this probably sounds
desirable however it does not mean Spain has economic health, because it
has 5,15 million of people unemployment overall and is the second highest
rate in Europe.
In this graph of the business cycle its showed the fluctuation of national
income from expansin to contraction recovery. In the special case of Spain
the Gross domestic product has quickly increased this year, and is
forecasted a 3,3% level of economic growth by the end of 2015.
The recession that in 2008 was in its climax now its being fighted with
employment rates however the actual situation of the country about how far
it is from is full employment does not allow the economy to develop other
scopes or focus on stimulating Long run aggregat supply.
In conclusion the spanich economy even though is having troubleshoot
being the second worst economy in Europe it is in recovery which means
that stimulating short run aggregate supply as the goverment is doing can
take this economy further and improve its GDP. As their plans of growth are
working, son it would be appropiate for this economy to stimulate aggregate
deand in order to do not let the decrease of the prices affect external factors
such as the devaluation of money and lack of presence in world market.