Answer to Question #165175 in Economics for Jonathan

Question

Write an 3-4 paragraph essay on the following topic, 

What is the impact of covid-19 on the American economy"

Justify your arguments using key ideas: Demand , Supply, and Market Equilibrium.

Answer 1

The coronavirus 2019 disease (COVID-19) pandemic has created both a public health crisis and an economic crisis in the United States. The pandemic has created a demand shock, a supply shock, and a financial shock all at once. As a result the equilibrium quantities of many goods decreased, but the change in equilibrium prices depends on the particular markets.