Economic challenges from the pandemic
Consider how the COVID-19 pandemic has affected Australia’s 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. Source relevant statistics from government databases.
Costs of living (150-200 words)
What happened to the Consumer Price Index and inflation/deflation in Australia?
Briefly explain the problems associated with high inflation, and why very low inflation or deflation should also be considered a problem?
Explain the problems that can occur to someone who has many loans when inflation ends up being different from expectations.
Economic inequality (150-200 words)
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.
Confidence and mental health (150-200 words)
Explain the role of confidence in the economy.
Briefly explain 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?
