Why might the 'Goggle mobility index' not be a good measure} of the fall in economic activity
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Why might the 'Goggle mobility index' not be a good measure} of the fall in economic activity during a lockdown?
Whether it provides, or not, a good measure of economic activity, depends on the substitutability between the goods and services produced in the affected and not affected sectors. If substitutability between the two is high, some production will relocate from the affected to the non-affected sector and the overall fall in output will be smaller.
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Macroeconomics A European Perspective
ISBN: 9781292360898
4th Edition
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
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