Question
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
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) Briefly discuss the major objectives of the NSW State government for making these COVID-19 disaster payments during this lockdown period.
b) 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.
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