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The owners of Small and Medium Scale Enterprises (SMEs) are planning a scaled-back reopening now that measures have been put in place to control the spread of COVID-19. They are struggling with asking their employees to come back to work for less money than they are receiving in unemployment insurance.
Complicating matters is that the owners got a small-business loan from the government COVID-19 palliative program called ZPP. To meet the requirements for the loan to be waived, they must show that they rehired their furloughed employees.
While the ZPP is being lauded as a way to keep people on employers' payrolls, small businesses are finding it hard to compete with unemployment benefits.
Design a macroeconomic recovery plan, that will
i. Enable the SMEs to rehire adequate number of staff needed for optimal production
ii. Get the economy back to its pre-COVID 19 growth trajectory
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