Using economic terminology, in a brief paragraph, explain HOW the COVID-19 virus has shocked the US economy. Draw the impacts on an AD/AS graph. (Hint: start with the AD/AS model in equilibrium and then demonstrate your curve shifts.) In another short paragraph, briefly explain the US government's fiscal policy initiatives to get the economy back to equilibrium. Draw the expected impact on a new AD/AS graph. (Hint: start with the AD/AS model in disequilibrium and demonstrate the appropriate curve shift.)
-Draw your own graphs on a piece of paper.
Using economic terminology, in a brief paragraph, explain HOW the COVID-19 virus has shocked the US...
Question 1 (20 marks) The recent global outbreak of Covid-19 has major economic consequences. Using the AS-AD model, show what will be short-term impact of this crisis on the AIRLINE INDUSTRY Discuss some reasons why this impact may happen. b. Bank of Canada has already taken Fiscal and Monetary policy measures to stabilize the economy during the time of this outbreak. What actions has it take in terms of Fiscal Policy? In terms of Monetary Policy? (Provide specific details, Use...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...