Question

1. Using other credible websites, determine the impacts of COVID-19 on the economy.

Address the following key points - impact on the following:

1. Aggregate Demand Curve
2. Aggregate Supply Curve
3. Fiscal Policy Response
4. Monetary Policy Response
5. Key Industry Impacts – Airlines, Cruise Lines, Hospitality (Restaurants/Hotels/Motels), Theme Parks, Sports, and Meat Production

Post two paragraphs with at least one credible source (citation) regarding the impact on these key industries.

Answer 1

Covid -19, a deadly disease impact on economy is negative in every term. Demand of goods in this period will rise for essential goods and demand of other goods will fall in covid situation in this situation the demand for essential goods rises due to possibility of extension of lockdown and due to lockdown their is no production of goods so the shortage of goods is possible. Due to lockdown all units are closed and production is halted so supply will fall also when production is not possible then there would be no supply.

Fisical policy is executed by government. Through fisical policy government increases and decreases the money supply in the economy in covid situation government tried to put more liquidity in the hand of people to create demand and launched many plans that could increase demand.

Monetary policy is executed by central bank of the country in Covid situation the central bank impacted immensely. Central bank did some policy easing work that could increase the demand in the market. By this way central bank exhausted it's reserve.

Other industries are adversely affected due lockdown there were no activity so some key industries are on the verge of close down so some key industries are very badly affected due to not work in these industries.