Use aggregate demand (AD) and supply (AS) analysis to predict the effects of COVID-19 pandemic on inflation and output. Show and describe the effects in both the short run and the long run. (Demonstrate these effects on a graph) (Hint: First, classify the COVID-19 pandemic as a supply shock or a demand shock or both)
Use aggregate demand (AD) and supply (AS) analysis to predict the effects of COVID-19 pandemic on inflation and output. Show and describe the effects in both the short run and the long run. (Demonstrate these effects on a graph) (Hint: First, classify the COVID-19 pandemic as a supply shock or a demand shock or both)
Chapter7: Inflation
Section: Chapter Questions
Problem 13SQ
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Use aggregate demand (AD) and supply (AS) analysis to predict the effects of COVID-19 pandemic on inflation and output. Show and describe the effects in both the short run and the long run. (Demonstrate these effects on a graph) (Hint: First, classify the COVID-19 pandemic as a supply shock or a demand shock or both)
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