Question

how might the government policy response to the drought and modify the macroeconomic impact of the drought

Answer 1

ANSWER:

Drought can cost businesses, people, and governments money. These impacts can be local, and only affect people in the drought-stricken area, or can also widespread and impact those living outside the drought affected area. It can adversely impact on several sectors, such as agriculture, energy production, recreation, and tourism. Macroeconomic policies can assist to minimize costs of drought. The maintenance of unbiased trade regime through economic policy instruments can be helpful in stimulating livestock exports and thus reducing excess stock in the livestock herd, lessen the pressure on the range lands, and hence will create room to increase additional numbers

Answer 2

Name and explain 2 csuses of drought