Reference no: EM132997273

Question - Explain the supply shock caused by quarantining employees. Provide a graphical representation of this shock. You can draw diagrams in MS Word or on paper. In the latter case just make a good quality photo and insert it in this Word file to the relevant question.

Looking at the cost incurred by firms operating in competitive markets, what is the impact of the pandemic on profit/losses made by firms in the short run? What could happen in the long run?

Assume that the COVID-19 pandemic generates an economic slowdown. Explain the impact of the pandemic on the labour market with a specific focus on the evolution of unemployment. To answer this question, you must distinguish the different components of unemployment.

During the pandemic, stockpiling behaviour has been criticized in the newspapers and described as irrational. From a game theory perspective, stockpiling of toilet paper or pasta can be modelled as a prisoner's dilemma game where individuals anticipate that the supermarket will run out of stock. Explain strategic interactions behind the stockpiling behaviour, and why they can be modelled as the prisoner's dilemma game.

Unprecedented bushfires impacted the Australian economy in late 2019 and early 2020. Explain how the Australian GDP accounts (or not accounts) for bushfires.