EC101

PRINCIPLES
0F
MACROECONOMICS
ESSAY
ASSIGNMENT

NAME: SHIVANI PRASAD

STUDENT ID: S11186723
QUESTION 1
Corona virus disease (Covid-19) is a dangerous and infectious disease caused by the SARS-coV-
2 virus. Some of the common symptoms of covid-19 are fever, cough, loss of taste and smell and
tiredness. Most people who will experience covid-19 illness will have mild to moderate
symptoms and some of them can recover without any special treatment but some of the people
will become seriously ill and will require medical treatment and attention. The virus can be
spread through an infected person’s mouth, when the person sneeze, cough, sing, speak and
breath. Thus, this essay will discuss the economic impact of covid-19 on the economy and 5
macroeconomics policies that respond to the covid-19 crisis.
To begin with, the economic growth of Fiji contracted in the year 2020, the hardest time for the
Fijians in the country’s history. The covid-19 pandemic had a huge impact on the economic and
social factor of the country. The poverty and unemployment rate in Fiji increases. Due to the
covid-19 measures that the government made on preventing the virus from spreading such as
closure of boarders, no movements, no jobs for plenty people and people experienced sudden
increase in uncertainty.
Moreover, as the number of covid-19 cases in Fiji increases, the economy faced many impacts of
the virus. Some of the impacts are firstly, the economy faced increase inequalities. This simply
means that the people in the economy was affected especially the women because their
household chores increase as the men and the children all stayed home due to workers being laid
off and all schools around the world was closed. For example, the women have to wake up in the
morning prepare breakfast and do all the chores, then prepare lunch, teach the children and after
that get all the things ready for dinner. Secondly, the economy faced emergencies related to
climate such as tropical cyclones Harold and Yasa, which affected some of the placed in Fiji
very badly last year. Thirdly, the unequal distribution of social assistance that was given out to
people. Some of the people in my economy did not receive the assistance given out by the
government because they were receiving pension from social welfare but as for my concern, I
think that if the assistance were given, then everyone should have received it because all the
people living in Fiji were affected by the pandemic but not only some of them. Even for us the
university students, we did not receive any assistance from the government as it stated that we
receive allowance but for our allowance it was also reduced and we used to receive our
allowance monthly.
Therefore, some macroeconomics policies during this covid-19 pandemic in Fiji are firstly, the
Fiji Socio Protection Covid-19 Response and System Development, which has improved the
social assistance service and through the FNPF it transfers cash to those people who have lost
their job and for those who had their working hours reduced due to the covid-19 pandemic.
Secondly, reduction in tax for employers and employees for their FNPF contribution was from 8
to 10 percent directly to 5 percent for all respective person. Thirdly, there was an addition in
budget granting for renovating the health sector facilities and even supplies for the biomedical.
Fourthly, medical equipment was delivered to the health workers and the supplies for infection
control as during this pandemic as other viruses can be prevented from spreading. Lastly, the
Joint Incident Management Team (JIMT) was established to provide functional management in
response to the covid-19 pandemic.
To conclude, due to the covid-19 pandemic plenty people in Fiji was unemployed mainly in the
tourism sector because the boarders were closed and no international visitors visited Fiji for the
past months. Even for some individuals in my economy did not have anyone employed from
their but they managed to survive during this pandemic by planting their own vegetables and
even by selling those vegetables, the money that the people get use to by goods for themselves.
The charity organization in my economy helped those needy people who cannot afford food
items for themselves, by providing those families with basic food items that is necessary in order
for people to survive. Our Fijian government also helped thousands of people in our country
providing food ration for the families who were in isolation because the family members were
tested positive for the covid-19 and the people were not allowed to go anywhere from their
homes from at least 2 to 3 weeks or more until they are tested negative. The covid-10 measures
that the government made to prevent the virus, some people did not pay attention as what the
government was telling for them to do and they were the ones that were badly affected from the
pandemic.
QUESTION 3
When boarders were closed in Fiji, the tourism, formal and informal sector had a huge downfall.
Many businesses in Fiji were closed for certain time and people have no or only small amount of
income for them for months. Thus, this essay will discuss more on the business and consumer
issues during covid-19, implications and recommendations taken by government to solve these
issues.
To begin with, resulting in the fall in domestic activities and increasing in unemployment, this
household income decreased for people in Fiji. During the covid-19 pandemic for employees,
their working hours was being reduced and there was a huge gap between the high- and low-
income earners as their income decreased. The business was facing problems regarding the
availability of products and the businesses were not able to satisfy the needs of the consumers
because of the consequences of covid-19. The pandemic had indirectly affected the import and
export that impacted the movement of trade all around the world. Due to this there was more
tension and stress in the global environment of businesses. The businesses faced problems in
assessing consumers locally as the online platforms have pulled all the consumers. To add on, for
households they struggle to buy the goods and services because there was increase in the price
level. The consumers purchase more products as they fear that those products will not be
available for longer period of time and they purchase goods in large amounts. The demand and
supply of products was unstable during the covid-19 pandemic. Individuals in some countries
buy products such as canned foods, Panadol’s and hand sanitizer to prepare themselves to
prevent the symptoms of covid -19 such as vomiting, diarrhea and nausea. There was also
increase in digital adaptation as consumers used to spend most of their time online and
purchasing unnecessary items rather than buying those items that would help them during this
pandemic.
Moreover, recommendation the government used to address these issues are firstly, motivating
businesses in Fiji by introducing the national incentive scheme that can be used for production
for Fiji made goods and services. The scheme battles the prices of imported goods and if Fiji can
produce all these goods and services, it will be a benefit for the Fiji’s economy as there will be
big uplift in the goods produced. Secondly, government to provide incentives for business
sectors to support enterprises, provide jobs for unemployed people and provide income for
employees. Thirdly, the government should support local firms and businesses potential to help
unemployed individuals in Fiji so that each individual in Fiji is able to earn money for
themselves and satisfy all their needs and wants and also it can help the individuals to improve
their standard of living.
To conclude, the covid-19 pandemic has affected plenty people in positive and negative ways
and people should make sure that they follow all measures of conid-19 to prevent themselves
from catching this virus and also to overcome this situation.
REFERENCES
 https://www.google.com/search?
q=covid+19&oq=covid+&aqs=chrome.1.69i57j0i512l3j69i60j69i65j69i60l2.4134j0j7&
sourceid=chrome&ie=UTF-8
 https://www.iied.org/inequality-face-covid-19-how-grassroots-communities-are-taking-
action
 https://blogs.worldbank.org/eastasiapacific/together-fiji-covid-19-and-road-recovery
https://www.koreascience.or.kr/article/JAKO202112748674924.page