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1. Describe how COVID-19 has affected all three curves of the AS-AD model and illustrate this using the graph. Explain, by referring to the graph,
1. Describe how COVID-19 has affected all three curves of the AS-AD model and illustrate this using the graph. Explain, by referring to the graph, why expansionary fiscal policy may be less effective in this case than in a typical recession. 2. Using the AS-AD model, explain how the U.S. economy can currently be experiencing both inflation and a negative output gap (based on pre-pandemic trends in potential output)
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