Macroeconomic impacts of COVID-19 pandemic first wave in the world

The paper seeks to identify the essential global-economic macro-shocks resulting from efforts by consumers, firms, or government policies reduce social distancing, which caused a sharp temporary change in world economy during pandemic outbreak second quarter of 2020. purpose is fulfilled using simple two-period real-business cycle model. observed reaction global period 2020 measured deviation time series GDP and its components, labor, labor income, average product USA EU log-quadratic trend. model can replicate economic response reducing total factor productivity, demand, supply—no need assume sticky prices. As sudden drop performance supposed, followed modest recovery already following period, it not assumed that would be able avert with fiscal monetary policy. Moreover, assumption variable prices supply-side shocks does support such