Economics.docx - Page 1 of 2(1 Briefly explain the impact of Coronavirus on the following components of GDP(C I X and M What\u2019s the likely overall

Economics.docx - Page 1 of 2(1 Briefly explain the impact...

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Page 1 of 2 (1) Briefly explain the impact of Coronavirus on the following components of GDP (C, I, X, and M). What’s the likely overall impact on GDP? (4) The impact of coronavirus pandemic in the economy is undeniable. The potential for devastating impact on the GDP of an economy pertains unless necessary steps are taken to tackle it. Consumption: The house hold consumption have been reduced after the coronavirus. Due to the absence of labourers there is not enough production of goods and services which has result in inadequate amount of supply for consumers to consume. The consumption on household activities seems increasing when when the government provide money for spending which seems to be recovered and it also grew by 1.2% but at the same time population also grew by 1.5% which means the consumption per person went backward. Investment: People prefer more liquid cash today because of the increasing rates and shortage of the basic necessities or more and be ready for the uncertainties. This decreases the amount

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