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How does the government shutdown affects the economy and which market model will be the most...

How does the government shutdown affects the economy and which market model will be the most affected by it.

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Answer #1

The Government shut down affects the economy in a large way due to following reasons.

1) There will be no wages for government employess thus leading them to spend less than their requirement

2) All government offices will be closed and thus there will no working of revenue, tax and other services which will be down

3) Passport offices and other licensing services will be down which will lead to loss of money

4) Banks will be shut down which will lead to chaos

5) Tourism will get affected

Stock market will fall, currency exchange rate will go down, Business persons will get affected .

Huge economic loss of money will be seen.

Due to government shut down pure monopoly market model gets affected

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