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2. Economic challenges arising from the pandemic

[Now consider how the COVID-19 pandemic has affected this countrys aggregate economy during the first twelve months of the pandemic, with respect to the following challenges. For each challenge, write a brief observation using your economic knowledge, and gather some data to support your observations.]

2.1 Unemployment

[What happened to unemployment and labour force participation rates? In your explanation, briefly explain to your client why it is important to monitor both of these labour market indicators.] (150-200 words)

2.2 Costs of living

[What happened to the Consumer Price Index and inflation/deflation? In your explanation, briefly explain to your client the problems associated with high inflation, and why very low inflation or deflation should also be considered a problem? Your client has borrowed heavily to invest in many projects. Explain the problems that can occur when inflation ends up being different from expectations and how your client might be affected as someone who has many loans.] (150-200 words)

2.3 Economic inequality

[Based on available data on the impacts of the pandemic, provide your assessment of whether there a risk that economic inequality has worsened, or might worsen in the future, as a result of the pandemic? Identify which cohorts of the population are most vulnerable to the negative impacts of the pandemic in terms of economic opportunities, financial security and wellbeing? Note which economic indicators would you advise using to monitor changes in economic inequality within a country.] (150-200 words)

2.4 Confidence and mental health

[Explain to your client the role of confidence in the economy. Briefly explain to your client what happened to consumer confidence and business confidence throughout the pandemic? Looking at the human side of the pandemic, source some relevant statistics to also explain what has happened to the mental health of the population and your assessment of the implications for the economy?] (150-200 words)

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