Concerns over unemployment among Malaysians have risen in the past year, following the economic fallout from the Covid-19 pandemic and the movement control order (MCO).

A survey by market research company Ipsos found that the unemployment fears had increased by 12% among respondents to 51% from a year ago.

It said in May 2019, only 39% of the 500 respondents surveyed said they were worried about unemployment.

At the same time, concerns over corruption and crime had fallen.

The survey found that 52% of respondents last year were concerned about corruption, but in May this year, only 39% expressed the same concerns.

As for crime, 34% of respondents in May last year were worried about the issue, but this year, it dropped to just 18%.

Since the Covid-19 pandemic, Ipsos said the appetite for major purchases such as a car or a house had declined.

In comparison, it found that 50% of respondents were comfortable about making a major purchase in August 2018 compared to just 27% in May this year.

"Comfort in making major purchases has been on a continuous decline since before the Covid-19 crisis, and now it is at its lowest point in more than two years," said the survey, which was released on Monday (June 1).

Similarly, there was a drop in the comfort level of Malaysians purchasing household items, dropping from 55% in August 2018 to 30% in May.

References: The Star 2020: Unemployment worries rising among Malaysians

Questions:

1.Using the article as above, describe how a rising in unemployment rate will affects consumer's daily life. Your explanation should include examples from economic perspective.( 25 marks)

2.Critically review and suggest on how government can impose fiscal stimulus to overcome the problem as mentioned in the article above.(25 marks)