Question

need to write about GDP and  COVID-19

There is no agreement among economists as to how the economy will recover from our current recession. Possible shapes of this recovery have been given different letters of the alphabet: “U” shaped, “V” shaped, etc. Economists lately have spent a great deal of time discussing the difference between these different forms of recovery. The Wall Street Journal video “Alphabet Economics: Why the Old Rules of Recoveries May Not Apply” in this week’s Course Materials folder attempts to explain the letters associated with these recessions.

answer this: What does it mean when economists say that GDP growth is annualized?

need to write about least be 4=5 sentences.

more information (Chapter 7 - Measuring Domestic Output and National Income, Chapter 8 - Economic Growth)

Answer 1

The world economy has come to a stand still since the first quarter of 2020 because of the deadly pandemic, COVID-19 spread. It has likely damaged the global economy by dipping the rate of growth in GDP's of all and by making people sick, increasing the death toll, emerging an atmosphere of fear and uncertainity.

The developed and well equiped nations also fell prey to this deadly disease by haulting all the economic activities. While the developing and the under-developed countries faced a kind of economic shock.

Subsequently, the impact of destruction due to this pandemic ceased the worldwide economic growth prospects. According to the Economists, Inorder to stabilize the ongoing unfortunate times, economy can recover using either U-shaped or V-shaped recovery procedures.

Moreover, a U-shaped form of economic recovery takes more time than a V-shaped recovery model.

A V-shaped recovery rises back quickly after reaching the bottom-line without taking any extra time.

On the contrary, a U-shaped recovery lingers on the bottom-line for a while, which damages the economy more before moving back to its recovery side.

Hence, a V-shaped recovery is more suitable in any case to overcome from this crisis quickly.

The annualized growth rate means calculating GDP on annual basis in a particular year. On the other hand many developed nations calculate its GDP on half yearly or quarterly basis so as to increase and analyze its growth rate in a more faster and quicker way.