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1. After the impact of covid 19 in the economy. Use the AS-AD model to show the impact of the decline in consumer spending on
1. After the impact of covid 19 in the economy. Use the AS-AD model to show the impact of the decline in consumer spending on output, the price level and the interest rate in the short-run. You may assume that with Covid-19 being a global pandemic that the world interest rate has fallen. Use a diagram and make sure that you give a detailed explanation of the economic reasoning behind the change in each variable.
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