Question

Section B Short Essay Bonus Question

Discuss the impact of the coronavirus pandemic on the Canadian economy. Explain and evaluate briefly the response of the Canadian government to the crisis. Use some of the concepts you learned in macroeconomics in your discussion.

Your essay should be concise, about 500 words.

Answer 1

Coronavirus(COVID-19) pandemic prompts the cancellation of public gatherings around the world, which has impacted on individuals and communities in addition to retailers and manufacturers around the globe, the level of concern regarding COVID-19 is higher among Canadian consumers. more than 62% of people experienced product shortage in past week . Due to its impact the consumers worried about job losses, product shortage, 54% of Canadians feel lonely and isolated during the coronavirus outbreak , The Canadian Bankers Association said (CBA) Nearly a million big bank customers in canada are getting to differ their mortage payments amid coronavirus pandemic

The Govt. of Canada taking immediate action to help Canadians facing hardship as a result of the COVID-19 outbreak. It support for Individuals and families; it provides special goods and services tax credit payment, increases the canada child benefit,extra time to file tax return & Mortage support.

It support for Business avoiding layoffs & rehiring employees, Canada emergency wage subsidy (CEWS) to support employers that are hardest hit by the pandemic COVID-19. The subsidy would cover 75% of an employees wages up to $874 per week for employers across all sectors which have Drop in gross revenues at least 15% in march & 30% in April & May. Partnerships are only eligible for the subsidy if their members consist exclusively of individuals or Canadians controlled private corporations eligible for small business deduction.

The Canada summer jobs program provides opportunities for youth to develop & improve skills within small business & public sectors , which supports the delivery of key community services. Employers can receive up to 100% of the provincial or territorial minimum hourly wage for each employee, Hire staff on part time basis & adapt their Projects & job activities.

The bank of Canada is acting several ways to support economy & financial system to take immediate actions to protect the well-being of Canadians during this difficult time. The bank has responded by lowering interest rate & providing liquidity support for financial institutions.

Provides support for industries by increasing credit available for agriculture,fisheries & Aquaculture . Govt.of Canada enabled Farm credit canada to provide an additional $5 billion in landing to producers, agribusinesses,& food processors who are impacted by lost sale , that helping them remain financially sound during difficult times. It provides support for Broadcasters ,The Canadian Radio Television & Telecommunications Commission (CRTC) with an equivalant amount to the waived part 1 License fees to support CRTC'S operations. It supporting delivery of items & personal outreach, improving access to essential food support.

By taking into consideration; the coronavirus which impact is financial & economical recession which will occur in macro level globally, main priority is to reduce the impact on the economy but its impact upon the economy is obvious . There is a need for broad macroeconomic insurance for recovery.