In the context of the basic macroeconomic model developed in class, analyze the impact of the following economic changes (ceteribus paribus) on domestic real GDP, inflation, the unemployment rate, and the budget deficit. Be sure to explain the relationships and linkages carefully. Illustrate your results using an aggregate demand- aggregate supply graph.

1) The US dollar continues to appreciate relative to the Euro and other major currencies.

2) Household wealth declines as stock prices fall due to fears of Covid-19 pandemic.

3) Computer technology improves in the US thereby increasing labor productivity and lowering production costs in most businesses.

4) Oil prices continue to decrease in international energy markets.

5)Business spending on software, research and development, equipment and structures fell sharply (8.6% annual rate).

6) Personal consumption, the economy's bulwark, fell sharply (7.6% rate, the steepest drop since the second quarter of 1980).

7) Many non-essential manufacturing facilities, e.g., automobile plants are currently under Covid-19 "lockdown."