Question

a) the effect of a reduction in the demand for labour as a consequence of a pandemic.
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Answer 1

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Demand shock

All this assumes that consumers who have not yet got the disease do not alter their behaviour. For a pandemic that spreads gradually this seems unlikely. The most important lesson I learnt from doing this study is that the pandemic need not just be a supply shock. It can also be a demand shock that can hit specific sectors very hard, depending on how consumers behave.