Macroeconomics

Q1. Reflecting on responses to COVID-19 pandemic, there have been several containment measures from public health policy to combat the pandemic including stay-at-home orders, wearing personal protective gear, social distancing, vaccination, and the like. Recently, President Joe Biden signed the $1.9 trillion corona various relief package. That is, the bill will also extend a $300 per week unemployment insurance boost until September 6 and expand the child tax credit for a year. It will also put nearly $20 billion into Covid-19 vaccinations, $25 billion into rental and utility assistance, and $350 billion into state, local and tribal relief. Discuss the macroeconomic policy instrument(s) employed by the government to assist the U.S. economy. How effective has the use of both public health and macroeconomic policies been in addressing the COVID-19 pandemic?

Q2. The COVID-19 pandemic led to business closures, event cancellations, deaths, unemployment, and work-from-home policies resulting in a deep economic downturn of uncertain duration. The Federal Reserve stepped in with a broad array of actions to limit the economic damage from the pandemic. Please discuss the conventional and non-conventional instrument (s) that the Federal Reserve employed to assist the U.S. economy? What more could the Fed do?