After you have studied Economics in the News on pp. 372–373, answer the following questions.

a. What was the scale of federal government expenditure on Covid relief programs?

b. How did the Covid pandemic change aggregate demand and aggregate supply? Draw a graph to illustrate your answer.

c. How did the fiscal policy response to Covid change aggregate demand and aggregate supply? Draw a graph to illustrate your answer.

d. As the economy recovered from the Covid recession in 2021, what happened to aggregate demand and aggregate supply, and how can we tell? Draw a graph to illustrate your answer.