Question

In light of what is happening in the global economy , discuss the economic effects of the Covid 19 on the U.S economy and assess the sweeping efforts that policymakers are using to guard the economy from coronavirus.

This discussion will not be graded but will earn you bonus points and help you relate the GDP model to economic policy.

Answer 1

The Coronavirus outbreak has affected global supply chain due to which U.S. firms cannot finish their own production and bring their end products to customers. This has resulted in reduced economic activity and growth and the fear of global recession is looming large. To contain the economic impact, the US government has planned a $1 trillion stimulus package which will help to keep local businesses afloat and provide households meet ends in the short term. Also, the SBA will provide low interest rate loans to small businesses in affected states to meet liquidity shortfall. The Federal reseve has also cut rates to nearly zero and we advocating for immediate unemployment benefits and tax credit to help businesses are able to continue to pay people even if they can’t be on the job temporarily due to the pandemic shutdowns.