Question

Discuss how issues related to the spread of the corona virus is affecting the following variables within your country.

a.         Unemployment

b.        Consumer demand

c.         Government spending

Answer 1

Sol :

Effect of Cronavirus is as follows :

(A) Unemployment : Due to Covid 19 , "International Labour Organisation " has reported that it was expected that unemplyment rate will be rise by 2.5 million but also added that if , significant fiscal law and monetary polivy have been implemented properly then it could be reduced. In the affected countries , as governemnt has implemented various policy regarding employees but still emplyment rate rises in both Rural and urban areas.

(B) Consumer Demand - The Effect of Covid 19 virus on consumer demand is that it rises the the demand for the necessity cosumer goods (i.e wheat, rice) because , it cause a fear of shortage in the economy and due to fear of shortage people is increasing their demand of the consumer goods.

(C) Governemnt Spending - Covid 19 also increases the Government spending on making proper availability of medical equipments , necessity goods and proper arrangement for fighting against cronavirus. Due to this , governement spending is increases than before.

So, Acoordingly , unemployment , consumer demand for neccessity goods and government spending increase due to Covid-19.