How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation?
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You are an economic advisor to the government. Discuss your opinion .
a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years?
b) What are the actions or policies that the government can implement to face this situation?
please answers with analysis and --graph (if possible)
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- During the Covid-19 recession, from the fourth quarter of 2019 to the fourth quarter of 2020, consumer spending on residential construction ________ and consumer spending on services ________. Part 2 A. declined by 20 percent; increased by 20 percent B. increased by 5 percent; increased by 10 percent C. increased by 20 percent; declined by 5 percent D. declined by 25 percent; declined by 40 percentThe COVID-19 pandemic has substantially affected the Canadian economy in several dimensions.As the Canadian governments, both federal and provincial, have issued various forms of “stay home”instructions, workers have to work from home. Working from home has two effects: firms are nowless productive and hence the current TFP z declines; labor supply N s(r) declines. In addition,consumers can only go grocery once a week and hence consumption demand Cd(r) declines for anylevel of interest rate and income. Answer the following question. Use a real business cycle model that we studied in Chapter 13 to analyze theimpact of Covid-19 in terms of output, employment, consumption, investment, wage, interestrate, money demand, and price. Make sure you show three figures: A figure illustratingthe goods market, a figure illustrating the labor market, and a figure illustrating the moneymarket. (In this question we assume that the change in output supply dominates the changein output demand, and the…Consider the following extract and then answers the questions that follow: How SA's recession is impacting consumer spending Consumers are actively doing pre‐shopping research either through broadsheets or online, and comparing retailers’ offerings to seek out the best value before even leaving the house. Consumers simply no longer purchase certain items, pointing to their extreme need for frugality in current market conditions. Added to this, consumers have also changed the way they use these products in their homes to maximise usage and minimise wastage. This includes the alternative use of products, like using margarine in place of cooking oil and fragranced body lotion instead of perfume. Q1. Discuss the impact of the economy on consumer behaviour.Note: it is important that you consider using examples that is relevant and specific to the scenario provided when responding to this question. Q2. Finding cheaper prices online is one driver for online shopping. Describe any four other…
- Consider an economy that is characterized by the following equations: C= 400 + 0.5 Yd I = 700 - 4000i + 0.1y G= 200 T= 200 (M/P)d - = 0.75Y - 7500€ (MP)== 600 What is the equilibrium consumption (C)?Consider the following demand components: Consumption described as a following: 100 million USD as an autonomous level of consumption plus 95% of disposable income spends on consumption. I = 30 G=15 T= 20 (a)Assuming goods market equilibrium, show equilibrium level of output in this economy. (b)How much output increase, if G increase from 15 to 20, show your calculations.QUESTION 1An individual lives for two periods and decides how much to consume in each period.- In the first period his consumption equals C1 and his income Y1 = 200- In the second period his consumption equals C2 and his income Y2 = 100He can save or borrow money in the first period to finance his consumption in the second period.The interest rate he gets in case he saves or has to pay in case he borrows money equals 7%.Determine the budget constraint of this individual. C2 = −0.935·C1 +314C2 =−1.07·C1 +314C2 =−0.8·C1 +314C2 =−1.08·C1 +314 QUESTION 2The total production of a good y is determined by the production function y = 3L2/3K1/3, where L is labour input and K capital input.The reward (factor prices) for labour and capital are, l = 27 en r = 2, respectively.The producer needs to produce 9000 units of good y.How much units of labour will he hire if he wants to miminize his total costs? 1587,4839,953000515,23 QUESTION 3A good is traded on a perfectly competitive…
- Suppose that Jane’s income increases from $1700 per month to $2350. At the same time, her consumption changes from $950 per month to $1300 month. What is Jane’s marginal propensity to consume? (Round your answer to two decimal places.)Q1. Consider the following two-period model of consumption and saving: Utility = C1^0.5 + B*C2^0.5 C1 + C2/(1+r) = Y1 + Y2/(1+r) where Y1 = 4, Y2 = 1, r = 0.17 and B = 0.5. Find a numerical solution for period 1 consumption, C1. (State your answer to 2 decimal places.)E-cigarette users considering quitting E-cig use may wind up taking several tries before successfully stopping: Now, assuming the typical graph for the MB and MC curve, what would happen if (which curve is shifting and as a result what happens to the optimal quantity of smoking?) 1) a new, highly effective smoking cessation aid became available? Describe what would happen in the graph 2) you get the exciting news that you will become a parent
- The government of Australia has embarked on various policies in order to reduce the severity of COVID 19 on the economy. Has COVID 19 caused economic expansion or a recession? Explain your answer using at least two economic effects on the economy of AustraliaIn the budget presented by the government, far reaching tax rebates are provided to all classes of tax payers. A researcher therefore conducts a survey to examine whether these tax reductions have led to a change in the consumption patterns of various social classes in the country. What kind of study would this fall under? Explain your answer.Cameron’s income is $1000 and her Consumption expenditure is $700. What is her MPC? Group of answer choices a. 0.7 b. 0.3 c. We do not have enough information to calculate her MPC. d. 700
