Homework

The swine flu could be *good* for the economy because everyone is going to run out and buy cold medication and hand sanitizer - do you agree?

Answer(briefly)

No, i do not agree. Swine flu have more harmful effect on the economy.
Government have to increase it spending on the area of prevent swine flu such as provide more information, health centre, collect data, advertisements and so on. This would involve opportunity cost that government would decrease its spending on other area such as education, or it would put downward pressure on budget deficit.
Some area`s activities have to be shut down such as school, factory, shopping mail, the place where people usually are crowed. Since the industries are closed, it would decrease production. Especially on the tourism. People are likely not choose to travel at this period of time, tourist market would be greatly damaged on the top of recession. Some small tourism industries may even went bankrupt if the swine flu is going to be wide spread.There would have great impact on airline companies.
People would feel uncertain, they are less likely to go to shopping mail, pub,gym,restaurants, most importantly, much less consumption on pork although we will not get the virus by consuming pork, but it all matter on the way people think and feel. People feel much safe if they do not eat pork. Therefore, less consumer spending, AD shift to left since there would less trade activities.(diagram...)
However, all the effect are short run.After the flu is over, economy will start to recover.Since the swine flu have not yet be seriously wide spread, the impact would not be so seriouse at the current time.