2. COVID-19 shock a. Discuss the impact of COVID-19 shock on each component of output (recall...

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Economics

2. COVID-19 shock
a. Discuss the impact of COVID-19 shock on each component ofoutput (recall the income-expenditure identity Y = C + I + G + NX).
b. Discuss the impact on the Canadian labour market,specifically employment number and unemployment rate.
c. There are many examples of asymmetric impacts of the virus.Discuss the impact of the quarantine on different types ofconsumption: durables, semi-durables, and non-durables. Discuss theimpact on the services sector versus manufacturing sector.
d. Explain how the upcoming recession due to COVID-19 isdifferent than the Great recession of 2008-2009.

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1 a Impact on Consumption c People will now like to save more because of the uncertainty of income level in future so it will fall b Impact on private investment I Due to low consumption and a pessimistic future investors will not want to invest much so this will also fall c Impact on government expenditure G Government will increase its expenditure in order to boost the economy again and will give bailout packages to the failing industries along with increased unemployment benefits as unemployment will also increase d See Answer

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