a. What actions taken by the Fed in 2020 would you expect to have influenced real GDP growth in 2021? Explain how those policy actions would transmit to real GDP.

b. Draw a graph of aggregate demand and aggregate supply to illustrate your answer to part (a).

The IMF projected a global growth rate of 6% in 2021, the highest rate since the 1970s, as vaccine availability increased and economies reopened with intense stimulus, especially in the United States.