Answer to Question #199357 in Macroeconomics for muzammil

Question

COVID-19 all around the world has restricted the economic activity. To stop the spread of the virus Pakistan like many other countries adopted the policy of smart lockdown. Shutting down of the industry has created adverse supply shock in the economy. While, the slowdown in business and economic activities the country is in the recessionary phase of the business cycle as the GDP growth for the FY 2020-21 is expected to be -0.2 accompanied by high unemployment and poverty rate.

 

Answer 1

Effects of Covid-19 on the economy

·When a company is shut down as part of a lockdown campaign, the productivity for its customers is likely to suffer due to a shortage of intermediary goods and services. Due to a demand constraint, suppliers of the closed firm are expected to suffer production cutbacks.

·Lockdown impacts production across the regions and countries and estimates the cumulative effect using input-output linkages at the country-sector level.

·Due to several waves of the pandemic imposed, lockdowns negatively impacted businesses, such as depletion of work for the workers, hence increased unemployment cases.

How to prevent covid-19

•Wash your hands regularly

•Keep a safe social distance from anyone when coughing or sneezing.

•Wear a mask when in public.

•Avoiding touching eyes, nose, mouth and ears.

•When coughing or sneezing, cover your nose and mouth with your bent elbow or tissue paper.

•Staying at home and avoiding public gatherings