30 Apr What has been the impact of the COVID-19 pandemic on the economy? [Identify 3 specific changes that took
What has been the impact of the COVID-19 pandemic on the economy?
[Identify 3 specific changes that took place during the COVID-19 pandemic that affected the macroeconomy, applying your AD-AS model. When you identify these 3 changes, you should think in terms of the 4 components of Aggregate Demand (AD) and Short-Run Aggregate Supply (SR-AS). Each of your 3 changes should relate to either a component of AD or to SR-AS, and be able to be represented by a shift in one of these functions.]
[Choose one of the specific changes that you have identified, and think about how you would illustrate the impact of this change using an AD-AS model. Think about how the effect causes a shift in AD or SR-AS, and how this consequently affects Output (Y) and Price Level (P). For the purposes of this report, you only need to think about the short-run impact. Illustrate this effect in a diagram, presenting the diagram in the Technical Appendix of your consultancy report and providing your written explanation in the text of your report here. In your explanation, you can refer to the Technical Appendix (for example: “Refer to Figure 1 in Technical Appendix”]
[In your analysis, consider how the pandemic has affected this country’s (1) unemployment, (2) inflation/deflation/costs of living or (3) economic inequality. Choose one of these problems and briefly discuss whether there is a risk that the problem has worsened, or might worsen in the future, as a result of the pandemic.]
[In your discussion of ways that the pandemic has affected the macroeconomy, provide some economic data to support your observations – your report should include at least one statistical graph. Building on the skills that you developing in Assignment 1, you are encouraged to create your graph by sourcing the original data from the statistical agency (rather than copying and pasting a ready-made graph). You can also include other references (eg. academic papers, news articles, other consultancy reports, government reports) that support your analysis.]
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