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The GDP analysis generates discussions around several economic segments, and understanding the historical factors can contribute to dealing with problems that arise in financial crises. Economic growth depends on trade relations -internal and external- in different economic sectors. The COVID-19 pandemic affects several economic sectors worldwide; trade expects to fall even more steeply, consequently impacting GDP and unemployment. Therefore, governments need to act to mitigate negative consequences. The GDP growth trend is related to periods of expansion and economic recession; historically, in periods of economic development, we have low unemployment rates than periods of recession. There is an inversely proportional relationship between GDP and the unemployment rate. According to Okun's Law, a one percent increase in the unemployment rate generates a two percent drop in GDP. We can see this strong correlation in the current scenario of the COVID-19 pandemic, with the unemployment caused by COVID-19, currently, at 16%, GDP is forecast to fall by 27.6% or more in the United States (USA Today, 2020). GDP also reduces when there is a reduction in product demand. With the increase in unemployment caused by economic crises, the need for products falls and, consequently, producers have less income. In Canada, with the consequences of the COVID-19 pandemic, the forecast is a drop by 12-32% in the agriculture business, which might strongly impact producers' revenues due to falling prices. These revenue impacts will contribute to the reduction in GDP (Barichello, 2020). For instance, it is necessary to find a solution to maintain consumption and, consequently, the producers' income. Dealing with the economic problems generated in a crisis requires knowing the source of the issues. In an unemployment scenario, it is crucial to stimulate the population's demand and to maintain production. Consequently, the effect on the drop in GDP and on the unemployment rate may be lower. Canada adopted income support programs to mitigate the pandemic's impacts; disposable income increased by 11% in the second quarter of 2020, reflecting an economic recovery almost twice that of the United States. (Reuters, 2020). To conclude, although the GDP analysis is thorough and involves several related concepts, understanding historical factors and their relationships is fundamental to building effective solutions to deal with future economic crises.
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