Question

predict the short and long term economic impact on the US economy due to COVID 19

Answer 1

COVID-19 pandemic has shaken the economy. It has spread to several countries in a month, inviting closures of border and emergencies in health declared by a number of countries. 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, recession seems extremely likely in the short term.
The U.S. Senate on March 26, 2020 voted for an approval of a stimulus bill amounting $2 trillion for providing the relief to individuals, families, small industries and businesses impacted due to the slowdown of an economy caused by the coronavirus pandemic. It is coordinated effort for increasing the government spending and lowering interest and tax rates for stimulating the U.S. economy. The stimulus package is in the combination form of a monetary stimulus and fiscal stimulus. The stimulus package will be helpful to reinvigorate the nation and reverse or prevent a recession by boosting spending and employment. It will provide the liquidity cushions to firms and households for stimulating the economy in long term.