Question

1. Several economist project a decline in GDP growth in many countries due mainly to the outbreak of the COVID-19 pandemic. To what extent do you agree with their projection?
2. Although the outbreak of COVID-19 has had adverse impact on the most economies, policy-markers believe it is an opportunity for developing countries to build their economies. To what extent do you agree with this statement?
3. No country can zero unemployment rate. Explain this statement.
4. Money is what Money does. Explain this statement.

Answer 1

As per policy we have to answer first question

Answer-1)

I agree with the statement that COVID-19 pandemic will adversely impact the GDP growth in many countries. COVID-19 has spread to several countries in few months, inviting closures of border and emergencies in health declared by a number of countries. Business travellers are grounded because the conferences and meetings are cancelled while the leisure travellers are scared of travelling. The pandemic caused a livelihood crisis for the daily wagers, migrant workers, casual labourers, agriculture workers, self employed as vendors and hawkers, taxi drivers and many more. Due to the lockdown situation workers, waste pickers and domestic workers etc are losing their livelihood.

With situations involving huge numbers of tasks being cancelled and also increasingly avoidance of the hotels, restaurants, travel, and with the rapid descent of stock market, decline in GDP growth seems extremely likely. Also with restaurants, stores, and more being closed, and most other the people forced to work from home, most of the countries are gearing up for a depression or recession that is hasn't experienced in almost a century. As most of the countries have experienced disruption in their supply chains and putting a damper on economic demand therefore spread of coronavirus has slowdowns the economic activities which is most likely cause a decline in GDP growth