Question
The Covid-19 situation of 2020 has severely affected economies across the globe, including India's. The Indian economy, too, has been severely affected by this crisis,
The Covid-19 situation of 2020 has severely affected economies across the globe, including India's. The Indian economy, too, has been severely affected by this crisis, with different sectors of the economy being affected to different levels. Based on your understanding of the situation, provide detailed answers for each of the components mentioned below.
Question 3A:What type of unemployment would a country like India experience from such a pandemic? Please provide an explanation. (2 marks)
Question 3B:What type of recession would be caused by such a pandemic? Provide an explanation. (2 marks)
Question 3C:What would happento the aggregate demand and aggregate supply in India because of the above two phenomena? Elaborate your answer. (2 marks)
Question 3D:How will the AD/AS curves behave in this situation? Please elaborate your answer. (2 marks)
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