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1.NSW state government has been making COVID-19 disaster payments for workers who have been unable to earn an income due to the COVID-19 lockdown. NSW

1.NSW state government has been making COVID-19 disaster payments for workers who have been unable to earn an income due to the COVID-19 lockdown. NSW State government is currently paying $450 if a worker loses 8-20 hours of work and $750 if a worker loses more than 20 hours of work per week.

a)Using the Keynesian Cross model, illustrate how these payments are contributing to the NSW State economic activities, employment and output. You have to show the transmission mechanism of these payments to the economy clearly. (3 marks)

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