Question

how would you describe the current situation in macroeconomics terms ?

Answer 1

Answer - In the current scenario of the pandemic of Covid 19 spread across the world , the world and the US economy is moving towards the phase of the Recession and its impact can be greater than the great recession of 2008 . The industries in more than half part of the world including US have been closed down. The sources of income of people have diminished. This has led to the huge fall in the AD . Due to the closure of the industries the AS has also declined. The government although is providing the stimulus packages to people and small business to boost the AD and AS but it is insufficient for the economy to restore the potential .