Question

Question: the economic impact of another Covid-19 relief package in the USA.

Do we need it? How can it stimulate the economy? Does it will help stabilize the economy or it bring debt to the country?

answers base on articles " Is $1 Trillion Enough for a New Economic Relief Package?"

Answer 1

Do we need it?

Yes we need relief package at the time of COVID 19 because during this pandemic all the economic activities have been stopped, many people have lost their jobs. Relief package will be a ray of hope in this pandemic.

How can we stimulate economy?

By dividing relief package among different sectors of there economy, the government will be able to stimulate economic growth. For example funding the unemployment benefits program will offer money to jobless, when they posses money they will start buying goods and services which will in turn increase the aggregate demand (GDP) of the country.

Does it will help stabilize the economy or it bring debt to the country?

It will help in Stabilizing the economy because relief packages will increase money supply in the economy and as a result aggregate deamnd will increase which in turn will cause GDP of the country to rise. After increase in the GDP, country can easily pay off it's debts.