Question

select any two (2) economic concepts that you found particularly appropriate relevant to understanding the current and potential future impact of the pandemic on society and the economy. First define the economic concept. Then evaluate how an understanding of these economic concepts relate to the impact of the pandemic on the overall economy or a particular industry. Finally, how might this understanding effect your personal behavior and decision making by providing a specific example. The essay should include at least two sources. please cited sources

Answer 1

The two economic concepts relevant to current and future impact of pandemic on society and economy are unemployment and Recession.

Unemployment means a person who is looking for job is unable to find job. The measure of unemployment is the unemployment rate which is obtained by dividing the number of unemloyed by the number of people in the labor force.

Recession is a contraction in the business cycle when there is fall in economic activity lasting for few months.There is fall in spending, fall in real GDP,fall in real income, fall in employment, fall in industrial production etc.

The US economy is likely to contract by 5.9%this year, representing the biggest decline since 1946.Unemployment in US is likely to increase to 10.4% this year because of the pandemic. A partial recovery is expected by 2021 with growth of 4.7%.The IMF described the great recession as the worst depression since 1930.All over the world the workers are facing job losses due to the cession caused by the pandemic.Americans applying for unemployment benefits are rising to $6.65 billions.

With spread of Covid 19,we observe change in personal  behaviour and decision making.In US online sales have increased.Panic buying dominates as fear of restrictions grip the consumer.As people decide to buy more, there is low stock in the stores and people make long ques outside.My personal behaviour has changed and I have learnt to make quick decisions.Iam exhibiting different behaviour than I normally do. I purchase various product combination that I do not do often.I purchase more than I purchase often.This tendency in my behaviour is the effect of the pandemic.Increased online shopping , decreased visits to grocery stores, health minded buying etc have been my personal behaviour and decision. EG -Alibaba in China reported that online purchase was 4 times higher than it was before.

sources -How covid 19 is influencing consumer behaviour.