Question

Some suggest real-life applications of macroeconomics:
"Covid-19's impact on your economy, how do policy makers intervene in the market
Due to macroeconomic fluctuations and so on. Of course, you can bring your own ideas

Answer 1

Due to Covid-19 and the number of cases which are increasing day to day there is a lock down in my country. Thus making everyone to stay in homes. Most of the factories are not running, people are not working which decrease the productivity. All this lead to recession in the country , making the growth rate of the economy to down and people suffer huge losses on their investment.

Government spending on health care and essential commodity sector as people need food and other services with which the lock down will be successful. So government is not spending on infra or any other projects. Due to this recession most of the people will loose their jobs. Unemployment rate again went up.

So Government and Central bank are trying to do every necessary thing to make the economy stable. Government is asking the companies not to remove employees in this situation. Central bank is reducing the interest rate so that there will be economic growth.

Until Covid-19 is under control same situation will arise after that than government and Central Bank will do all necessary steps to increase growth rate in economy