Question 2 Consider a baseline long run steady state equilibrium where output is 22 trillion dollars and the price level is 100. Note: price Expectation is the same as price level at the long run steady state equilibrium & unemployment is 5% or lower A) Starting from the baseline, suppose COVID 19 hits this economy. If this disease only makes workers sick can you show how would the long run steady state equilibrium will be disrupted? Use a graph called Graph 2A. Explain if as a policymaker you will want the market adjustment process to help you come back to the equilibrium in this case (you can make changes in Graph 2A to ptake your point)? B) Starting from the baseline, suppose COVID 19 hits this economy. If this disease makes workers sick and makes consumers fearful to go out; can you show how would the long run steady state equilibrium will be disrupted? Use a graph called Graph 2B. Explain if as a policymaker you will want the market adjustment process to help you come back to the equilibrium in this case (you can make changes in Graph 2B to make your point)? Question 2) Baseline Long Run Steady State Equilibrium LRAS, SRASO p = pe A AD. Yf Y