COVID 19 Flashcards
1
Q
what happened during the covid 19 reccesion (5 points)
A
- lower demand
- 7.4% UE 2020 (high underutilisation)
- Inflation: -0.7% (low wages, import price low, houseprice low)
- Growth: - 6.3%
- spending on non essentials low
2
Q
what was the GFC driven by: 3
A
- asset price rising
- loss of financial market confidence
- interest rates falling below loans used to purchase them so investors driven into new equity = forced loan payback
3
Q
what was the impact of the GFC
A
damaged high income households with income surplus
4
Q
what was COVID driven by: 3
A
- external shock
- fall in productive capacity (output) and demand for goods
- spending fell despite constant incoeme whereas some people lost jobs so had a strict budget
5
Q
what the COVID impact:4
A
- damaged young workers and women casual/partime
- V shaped recovery (vaccine stopped)
- work from home reduced transport and office space demand
- less globaliation
