During the current COVID-19 pandemic many countries have imposed quarantine on their populations in order to limit/ stop the spread of the disease and avoid overload on the health system. While these measures are justified from the health perspective, they have major economic consequences. In this assignment you are asked to analyse different economic aspects related to the COVID-19 pandemic.

a)Analyse the effects of quarantine on GDP, employment and the unemployment rate.Which industries are likely to be most affected and which industries are likely to be least affected by quarantine measures?

b)Choose any country that introduced quarantine as an example.What was its GDP growth rate in 2018, 2019? (Indicate the source of information.) Is this country likely to be in recession this year?Refer to two definitions of recession.

c)Are your answers consistent with (general) Okun's law?

d)What do you think would happen to inflation in your chosen country in the coming year? Explain.

e)What factors usually determine individual consumption?In light of these factors analyse how the situation with the COVID-19 pandemic is likely to affect aggregate consumption. Use the theory studied in the course in your answer. You may want to provide some examples for your chosen country.

f) Analyse the effects of the COVID-19 pandemic on investment and trade (exports and imports, in particular).Refer to the theories studied in the course.Provide some examples from your chosen country.Do you think investment and trade will also be affected after the pandemic is over?Explain.

g) Governments in many countries introduced various policies and mechanisms to assist their economies during quarantine.Analyse the measures introduced in your chosen country.Do you think they are effective in assisting the economy?How do these measures affect the budget and debt position of the government? Discuss whether they are sustainable.