Global Pandemic as a Shock to the Economy Economics Research Paper (Research Paper Sample)
This sample analyzes COvid-19 pandemic as a Shock to the Economysource..
Analysis Paper: A Shock to the Economy
Analysis Paper: A shock to the economy
Caballero and Simsek (2020), in their article, A Model of Asset Price Spirals and Aggregate Demand Amplification of a "Covid-19" Shock (No. w27044), discuss the outbreak and spread of coronavirus (COVID-19) as a severe shock to the global economy. The increasing spread of coronavirus and the enactment of containment measures, like secession of movements and "stay at home" policies have caused companies, mostly those in service industries, like tourism, hospitality, and travel, to suspend their operations and dismiss some of their employees. Many COVID-19-infected countries have suspended learning and sporting activities. Companies and individual investors operating in these areas continue to suffer losses due to the government's closure orders, low consumer buying habits, lost working hours, and new strict and costly operating regulations. Unemployment has increased globally, as many businesses are forced to lay off workers.
COVID-19 containment measures, including the cession of movements and social-distancing and government orders, compel many organizations, such as air transport companies, restaurants, and sporting clubs, to withdraw some of their operations or shut down temporarily (Caballero & Simsek, 2020). Therefore, output for entertainment, international air tickets, and drinks and beverages is likely to reduce further if the pandemic does not end soon (Carlsson-Szlezak, Reeves, & Swartz, 2020). For the businesses engaging in export and import, their operations are obstructed and are likely to wait for long to resume their operations
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