Question

Explain how can the state activate entrepreneurship to get out of the economic crisis faster after the COVID-19 Coronavirus pandemic. What economic policy is used for this purpose?

Answer 1

COVID-19 pandemic has shaken the economy. Due to coronavirus pandemic small industries and businesses has impacted which has slowed down the economy. To help this situation caused due to the COVID-19, the economy in addition to sanitary security and anti-pandemic systems and instruments should launch anti-economic crisis instruments of interventionist socio-economic policy, inclusive of monetary, social fiscal, budgetary policy etc. This will help to stimulate a floundering economy. The main purpose of the stimulus anti-economic crisis instruments to reinvigorate the nation and reverse or prevent a recession by boosting spending and employment. These measures on the economic policy can ensure continuous and broad access to safety-net programs, provide income support for the households, giving the incentives for employers for avoiding the layoffs, provide loans to small businesses, and giving liquidity cushions to firms and households for stimulating the economy