Question

what is the connection between corona virus and US Gdp ( 21trillion ) ? what are the impacts on economy?

Answer 1

We all know that corona virus is a contagious disease and is taking life of people who have low immunity or those who are not having proper healthcare facilities. So, to stop the spread of corona virus, the government is restricting the public to go outside and is implementing lockdown in the country. This means that the production is to be cut, people are advised to work from home only, restricts their outdoor activity. This impacts the economic activity in the negative way. This slowdown or decreases the economic activity, restricts trade and commerce. Hence, the GDP is reducing due to Corona Virus. Additionally, government is spending a lot on healthcare facilities which it could have spend it on other developmental projects if there were no health emergency. So, due to corona virus the economy is getting impacted in a negative way. It is reducing the GDP of USA.

Impact on the economy:

• Decrease in GDP
• Decrease in GDP growth rate
• Burden on healthcare industry
• Government resources are getting exhaust due to corona virus
• Restricting trade and commerce
• Restricting tourism industry
• Low aggregate demand in the country
• Due to a large number of deaths in the country, it is also reducing the labor force