The virus is decimating the global economy, but why does the vernacular around the virus itself have to sound like economic-talk? Well, the phrase makes sense and it matters to the economy.
Here’s a quick definition before we dive in. The virus’ infection spread curve measures the rate at which the virus is spreading to other people in the world.
We want the curve to flatten, not steepen.
Imagine a graph, where the Y axis is the rate of spread and the X axis is time going by. If the curve bends upward, the spread is accelerating, meaning that the percentage increase in people who contacted the virus increased at a faster rate than in a previous time period reflected on the graph.
It has been said that for every person that has the virus, that person will soon spread it to two more people. Then four people soon contract it. Then 8, then 16, 32, 64, 128 and so on. Yes, that’s why this thing has gotten out of control and needs thorough medical attention.
Economists and investors alike want to see the curve bend downward. That would meant that the rate of increase in new cases is lower than that of a precious period shown on the graph. That would mean social distancing and medical supplies and attention are helping.
So how does this impact the economy? Watch the quick video above.
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