Question

Assume you are an economic adviser for the future president. She tells you that unemployment is at high level and GDP is at .5%. She asks you to adress the following (answer all please) :

a.) What is a possible cause of this ecnomic condition?

b.) How can we solve the unemployment problem and boost the economy?

Answer 1

A) One possible cause for this Economic problem is the outbreak of the COVID-19 in the entire world, which has put a brake on all economic activities in the world, leading to businesses incurring losses and laying off workers, leading to high unemployment rate and low GDP, pushing the world economies to recession.

B) The unemployment problem can be solved by hiring the unemployed workers in volunteer work and keep money in their hands, increase government expenditure to allow firms and businesses to engage in R&D and create new job opportunities, provide tax breaks to individuals and businesses to keep them from incurring losses and indulging in layoffs etc. The only way is to engage in expansionary policies.