Question: Draw an Aggregate Demand and Aggregate Supply graph with an equilibrium GDP - starting point. You can ignore the Long Run curve. a. Illustrate (draw)

Draw an Aggregate Demand and Aggregate Supply graph with an equilibrium GDP - starting point. You can ignore the Long Run curve.

a. Illustrate (draw) the effect of the Coronavirus on this graph.

i. Does the AD shift?

ii. Does the AS shift?

iii. Do both shift?

iv. Explain your rationale for any shifting that you drew on your graph.

b. Illustrate (draw) the effect of Fiscal Policy and Monetary Policy on this graph.

i. Does the AD shift?

ii. Does the AS shift?

iii. Do both shift?

iv. Explain your rationale for any shifting that you drew on your graph.

c. What is the current Fiscal Policy for the US?

i. Expansionary or Contractionary? Explain why you feel this is what they are pursuing.

d. What is the current Monetary Policy for the US?

i. Expansionary or Contractionary? Explain why you feel this is what they are pursuing

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