2 (30 points) Aggregate supply, aggregate demand, Covid-19, and inflation a. (5 points) In a diagram, plot all curves for aggregate demand and aggregate supplies by labelling them. You can use, for instance, AD, for the initial demand. For long-run curves, use the superscripts LR, such as AS " (assume short run aggregate supply is horizontal). We assume that the initial equilibrium is the long-run equilibrium; label it with letter A. Don't forget to label both axis of the diagram. Following the outbreak of the Covid-19 pandemic, government needed to joggle with the implementation of economic and health policies at the same time. Let's consider only one measure: lockdowns. In the following four questions, we'll analyze lockdowns extending for some months. b. (5 points) Would aggregate demand be affected? If so, how? Explain any shift and the underlying economic rationale by considering that most of us had to stay at home. If needed, plot in the previous diagram and label any new curve using the subscript as in AD1. c. (5 points) Would aggregate supply be affected? If so, how? Explain any shift and the underlying economic rationale by taking into consideration that people could not go to work and some people needed to quarantine while infected with Covid-19. If needed, plot in the previous diagram and label the new curve as AS1