Answer to Question #147161 in Macroeconomics for lebza

Question

Explain, using the AD‐AS model, how the South African Government can use
fiscal policy as a tool to recover from the negative effects of this COVID‐19
pandemic.

Answer 1

There is need for south Africa to encourage local industries by offering subsidies hence reducing the cost of manufacturing and increasing employment. This will greatly help in economic recovery from the covid-19 pandemic