Answer to Question #198224 in Macroeconomics for Graylin Lapi

Question

Discuss some literature review about the impact of covid 19 on the economic growth, human welfare and trade.

Answer 1

The GDP lowers due of the pandemic.During this period, people spend less money consequently the demand reduces due to the lockdown. As the supply of goods decreases, prices rise and real GDP decreases.

Because consumers are spending less since of the lockdown, corporations are unable to maximize earnings because they are unable to sell more things, causing the market to decline because they are unable to pay their employees and are firing them.