Question

Given your knowledge of the Goods Market Equilibrium, evaluate the adverse impact Covid-19 is having on the Bahamian economy. Illustrate.

Answer 1

Goods market equilibrium connected with demand and supply factor in an economy.but according to production factor the supply or output is the major factor the economy.the demand factor is an independent variable. Which not at depend to the goods market equilbrium.But the aggregate supply in an economy have direct influential factor. Which also based on goods or service production and the labour supply.according to goods market equilibrium without interference from the foreign market or sector the market of our country's economy is equilibrium or equal if the national investment and saving are equal at the base of same level of investment expenditure at the real interst rate accordingly.The Bahamian economy is most depend on their income from the tourism and other foreign financial services.but due to impact of covid -19 situation the totally it has abolished and the income saving not at raised in the foriegn sector so with out the foreign sector they can't maintain this goods market equilibrium.so the economy and market related to labour as well as goods is totally disequilibrium nature now. It can only improve after this covid -19 situation.The restrictions and problems in the imports and exports and also the tourism sector and finally the international financial services these three are very cruicially affect the impact from this pandemic situation.