Question

Mr. Mohammed Al Shahri has been assigned by his manager to write and discuss how can COVID -19 affect economy regarding two issues, Production and inflation.

Answer 1

Answer)

• Following are the ways in which covid-19 can affect production

1. Production time will be more as lot of processes will require safety measures
2. Production can get delayed owing to supply chaim disruptions
3. Production can get hindered owing to new people working owing to disruptions

• Following are the ways in which covid-19 can affect inflation

1. Inflation can increase owing to lost revenue
2. Inflation can increase owing to organizations investing in hygiene and safety measures
3. Inflation can increase because of uncertainity which means everything will increase,from labour to supplier side(raw materials)

In nutshell impact will be both on production and inflation owing to uncertainity,disruption already caused,supply chain disrupted which can eb overcome only with time.

Answer is complete.Thank you!