Question

Question 2:

Using what you know so far about the dynamics in American families, how are they likely to be responding to the global pandemic which has led to social distancing; increased work from home; shuttered schools and day care centers; and higher unemployment?

Answer 1

First of all due to this global pandemic, as there is an increasing unemployment rate, the purchasing power of the people will reduce, due to the fall in the income level. In the short run, this will lead to a fall in the demand for goods and services. The nature of American families is dynamic, they might change to a new kind of economy, in which new work from home related campaigns and startups are launched. The school even might start teaching and taking exams online only. The companies will also promote more work from home as they can reduce their other costs like rent, electricity, and other equipment costs, and may even increase their profits in this pandemic. This benefit will be more in the education sector firms, online portals, websites, and others.

People might come up with totally new business plans, businesses that promotes more of staying home, and providing safe and secure facilities to people with maintaining social distancing at their doorsteps. The economy of America will respond to this pandemic, by initiating new ways of generating incomes which includes staying home more.

The social distancing might raise the need for new equipment and new materials, new goods and services, for example, the safe suits, clothes, finger masks, face masks, more hygiene-related products.

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