Question

Show the impact of Covid-19 on the Australian economy. How did the stimulus package impact the Australian economy? Explain your answer with the help of aggregate demand and supply model. What are implications of Covid-19 on the government budget.

Answer 1

The Australian economy is one of the profoundly evolved economies over the globe. According to the Australian Bureau of Statistics, its GDP was around $1.15 trillion of every 2019 be that as it may, the Australian economy faces a mounting trouble due to COVID-19. The nation has recorded around 7200 affirmed cases with around 102 fatalities altogether till twelfth June, 2020.

As preventive measures and to help the economy, the administration of Australia has put forth a few attempts going from supporting the human services foundation to the occupations of the people groups in the nation. A few wellbeing committees and associations have met up to build up the treatment for COVID-19 and to battle the illness. The National Health and Medical Research Council (NHMRC) is supporting the national just as universal endeavors, including NHMRC financed specialists, to address the COVID-19 pandemic and its results.

The Australian government found a way to keep up strength during the pandemic. To forestall and stop the spread of the infection, the administration declared to diminish open get-togethers to a limit of two individuals. Expulsions are waiting for a half year by the states and regions. Proprietors and tenants are urged to discuss momentary understandings. Further, the legislature has presented a Jobs Hub site that empowers people groups to look for some kind of employment during the pandemic. The Jobs Hub likewise publicizes the opening structured by different organizations across Australia. The legislature has additionally declared to dispatch Early Childhood Education and Care Relief Packages that give families expense help while supporting kid care administrations.

In view of industry arrangement, the effect of COVID-19 pandemic on Australia's economy is concentrated into vitality, human services, retail and web based business, agribusiness and food, flying, producing, travel and the travel industry, and others. After the colossal number of cases in the nation, a brake on the monetary exercises has been seen. Most influenced segments in the nation due to corona-virus incorporate flying, travel and the travel industry, development, and other impermanent work parts as various organizations suspended their tasks since March 2020.

Aggregate supply is the all out gracefully of products and ventures that organizations in a national economy plan on selling during a particular timespan. It is the aggregate sum of products and enterprises that organizations are happy to sell at a particular value level in an economy.

In the short term, because of the covid outbreak, purchasing power of the people would be much less than normal and it would surely affect the GDP of the country, to counter this government need to pump in more money in the market to incentivize the industries which in turn would result in achieving equilibrium in the demand and supply cycle in the near future.