Introduction
The COVID-19 pandemic wreaked havoc on the global economy in an unparalleled fashion. Each step of this three-part core assessment will challenge you to apply key macroeconomic theory concepts to this real-world case study (that we all lived through). In this unit, you are tasked with looking at the global macroeconomic impact of COVID-19 on key indicators such as GDP and the unemployment rate.
CLO 3 – Define Gross Domestic Product (GDP), and identify the four expenditure categories in the equation GDP = C + I + G + Xn; identify the measurement and sources of economic growth.
CLO 4 – Describe the business cycle; identify the primary measure of unemployment and define “full employment”; identify the primary measure of inflation and distinguish between demand-pull and cost-push inflation.
Directions
Submit a journal entry (a doc or .pdf file) that thoughtfully addresses each of the four following bullet points. This assignment does not have a minimum word count, but will likely be upwards of 400 words in order to meet the requirements of the “Excellent” rubric criteria.
- Provide a brief synthesis (4-5 sentences) of the COVID-19 pandemic and how it impacted the global economy.
- What was the impact of COVID-19 on the USA’s labor force in 2020?
- How did COVID-19 impact consumer and business confidence among the world’s largest economies?
- How did measurement problems factor into the economic impact of COVID-19?
Additional Resources
- https://sgp.fas.org/crs/row/R46270.pdf
- https://www.brookings.edu/articles/explaining-the-economic-impact-of-covid-19-core-industries-and-the-hispanic-workforce/
- https://ideas.repec.org/p/bof/bofrdp/2021_004.html
- https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/survey-us-consumer-sentiment-during-the-coronavirus-crisis
- https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-coronavirus-effect-on-global-economic-sentiment
- https://www.census.gov/library/stories/2021/03/initial-impact-covid-19-on-united-states-economy-more-widespread-than-on-mortality.html
- https://www.brookings.edu/articles/ten-facts-about-covid-19-and-the-u-s-economy/