Question

Could you explain the economic impacts of Coronavirus?

Answer 1

Covid 19 is a pandemic which have worst impact on all the nations . There is great hit to world economies. There is recession and fall in income ,output and employment. Real GDP have declined. People have no belief in government and demand less goods and services. Due to fall in both aggregate demand and supply , nations are at the worst stage of economic growth. It is considered that now, due to covid , nations have reached back 50 years .It is a big failure to economic growth.

Because of  decrease in supply, production has reduced, worker get unemployed and income has reduced. This also have impact on the aggregate demand. People have lost their belief in demand and consume less goods and services.

Due to decrease in aggregate demand, demand curve shifts backwards and due to decrease in aggregate supply , aggregate supply curve shift backwards . Due to that equilibrium price increases from p to p1 and equilibrium GDP reduced from Q to Q1. Due to decrease in real GDP unemployment in Oman increases and economic growth decrease