Answer to Question #205015 in Macroeconomics for Wandile Prince Zul

Question

The chart below illustrates the cumulative confirmed deaths by COVID-19 just before 

what looks to be a potential third wave of the pandemic in South Africa. There have 

been 56 363 confirmed deaths in South Africa alone from COVID-19 as of 30 May 

2021.

Use specifically the Solow growth model to discuss the implications of this pandemic 

on the prospects of long-run economic growth for South Africa.

Answer 1

The pandemic has led to the loss of lives decreasing the country's population. This has decreased the labor force resulting in decreased population. In the long run, the pandemic will continue to disrupt the economic activities, that is, no savings and investments hence low output and capital.