1 Considering the recent expenditure of governments across the world in providing vaccines free of cost to their respective citizens, we assume that government is facing a temporary budget deficit. Based on these circumstances and the additional difficulties due to the ongoing pandemic, please answer each of the following questions related to the country you have or will be speaking about during your presentation. a. Please write the equation for GDP to reflect a possible budget deficit. Now, based on the above situation, explain in your own words, how will the government for the country of your choice expect to address the situation or has already planned to reduce the budget deficit. b. Assume you are an investor in your country, how will the choice for investment change due to the expectation of government policy in your response for part (a) above? Explain with the help of a diagram as you feel appropriate. c. Assume the labor demand has been affected due to the pandemic and as per your choice in part (b) above, the wage rate will be impacted, how will this affect the GDP? Please explain in your own words with the help of a diagram. Question 2 Sweden, one of the most technologically advanced nations on the planet, is paving its way to becoming the world's first cashless society by March 2023. By then, by March 24, 2023 to be precise, in Sweden, cash will no longer be accepted as a means of payment. In general, cash is already a no-go in Sweden. There is a unique law in Sweden that enables merchants to make customers pay electronically despite the status of cash as a legal tender. Sweden's culture of innovation and being early adopters of technology coupled with the nation's high-quality of life have played a paramount role in the transition. a. If this situation persists, how will the Demand/ Supply of Money in Sweden change and why? [Draw appropriate diagram to support your answer] b. How does the above event change the equilibrium condition of Money market in Sweden? [Draw appropriate diagram to support your answer] c. To increase the process of going cashless, if the Government of Sweden has decides to reduce the money supply in the economy, which specific policy should the government adopt in this regard? What are the actions that the government might take following the policy? Explain