Answer to Question #243799 in Macroeconomics for Azile

Question

Discuss the economic effect of Covid19 on employment, output and inflation in south Africa

Answer 1

COVID-19 made most of the business within South Africa to shut down. The lockdown events made most people within the country to lose jobs. Similarly, it was not easy for people to come up with innovative ideas to create employment as they deal with the pandemic response. The social distance recommendation made most of the businesses to reduce number of employees within the company, which reduced the level of output. Reduction in workforce made the work performance to decline. This constituted the country moving towards inflation.