Question

Being a student of macroeconomics, provide a short commentary (~200 words) on the expected macroeconomic situation once we are on the other side of the pandemic (hopefully soon). Structure your commentary around the effects on any one of three markets – labor, goods or asset – that we have covered so far.

To support your commentary, find another article by an economist in any leading newspaper/journal (it can be a commentary on the Australian domestic economy, any other international economy or preferably a general global economic commentary). You just need to cite the article i.e. mention the title of the article, author and journal, do not copy.

Answer 1

Ans. Essay limit 200 words - Not need to refer any article it is so very obvious.

I appreciate the progressiveness in the question ad it imperative to understand even before to start answering that Labor is the most critical means of econominc value generation. Without labor economies crash no matter how great the assets are or how specialised the goods are are having said that lets evaluate the sitaution of Labor Market after C19 retreats. Labour Market: At present the labor or the executives are either home arrest or fighting the disease. In a way they are unavailable to contirbute in the ecomonics activities or value generation acitivties of the economy. The prouduction houses are shut are there is no labor and similar is the case with other labor intensive industries, I hope thay survie to reach the other side of the pandemic but just in case they don't the labor may become expensive due to low supply (hope I am terribly wrong). There is a matching demand of labor existing today to the avilable supply. There by maintaining the equilibrium. Any ups and down on either side can affect the equilibrium and hence the available demand/supply of money in the economy.

Expensive labor on the other means inflation in the economy which is good but not immediatelly after a recession is not welcomed and have adverse effect on the consumption patterns in the economy. Cheap labor on the other side may not be a case as panedic will only reduce (I wish I terribly wrong) the available labor supply. In a nutsheel world wont be same as it was before the pandemic be it any market not just Labor...