Question

Part III short essay (10 points). (At most one page including diagrams and explanations)

1. The corona virus pandemic certainly has short run and long-term economic effects on global
aggregate demand and Aggregate supply. Use the AD/AS model to show these effects.

Answer 1

The corona virus pandemic effects everyone globally. It affects the supply the united states brings in from other countries. As we try not to spread the corona more we must stop our supplying from other countries meanwhile. Other countries are in the same scenario as us because they may be worried about spreading and receiving.