Answer to Question #207616 in Macroeconomics for Love

Question

The COVID-19 pandemic has been a humanitarian and economic tragedy .

Further explanations of the following :

(1) Supply-side effects (lower labor supply and higher real wages),

(2)demand-side effects (lower consumption),

(3)human capital effects (poor health and education),and

(4) social trust effects are all examples of supply-side effects (between individuals and to your political institutions)

Answer 1

COVID 19 has affected the economy negatively and has become a tragedy for humans. The pandemic has led to a lower labor supply since people fear working or have stopped going to work because of the COVID 19 virus.

COVID 19 has impacted the demands for various products. Some firms that serve as customers for certain products are now at the edge of collapsing or are not operating because of the pandemic. Additionally, many people are not working, thus lacking enough money to consume most of the products. Therefore, COVID 19 pandemic has caused low consumption.

COVID 19 has led to poor health and education as many people cannot afford enough money for better health care services and to access the best schools and good education programs since they may not work because of the fear of being affected by the virus.

COVID 19 has negative social supply effects between people since people fear associating as they do not whether the person they are interacting with is infected by the virus.