It appears that there was an economic drop during the 2019-2021 period as a result of the pandemic. Assume that we can view this as a negative shock to private investment, due to a combination of lockdowns and uncertainty about the world. In under 150 words, answer the following question: Was government consumption expenditure used as stabilisation policy following the slow-down during 2020 and 2021? (Note, you only need to discuss this in terms of our demand model of Income-Expenditure, IS-MPR, and Aggregate Demand.)
It appears that there was an economic drop during the 2019-2021 period as a result of the pandemic. Assume that we can view this as a negative shock to private investment, due to a combination of lockdowns and uncertainty about the world. In under 150 words, answer the following question: Was government consumption expenditure used as stabilisation policy following the slow-down during 2020 and 2021? (Note, you only need to discuss this in terms of our demand model of Income-Expenditure, IS-MPR, and Aggregate Demand.)
Chapter1: Making Economics Decisions
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- It appears that there was an economic drop during the 2019-2021 period as a result of the pandemic. Assume that we can view this as a negative shock to private investment, due to a combination of lockdowns and uncertainty about the world. In under 150 words, answer the following question: Was government consumption expenditure used as stabilisation policy following the slow-down during 2020 and 2021? (Note, you only need to discuss this in terms of our
demand model of Income-Expenditure, IS-MPR, and Aggregate Demand.)
Year |
Government consumption per capita ($) (rounded to a whole number) |
2003 |
6672 |
2004 |
6820 |
2005 |
7016 |
2006 |
7394 |
2007 |
7515 |
2008 |
7757 |
2009 |
8040 |
2010 |
7892 |
2011 |
7931 |
2012 |
7969 |
2013 |
7955 |
2014 |
8041 |
2015 |
8154 |
2016 |
8124 |
2017 |
8096 |
2018 |
8238 |
2019 |
8371 |
2020 |
8658 |
2021 |
9207 |
2022 |
9962 |
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