1) Suppose that the following two events occur in January 2021: I) A Vaccine for Covid-19 becomes available. II) Individual wealth is depleted to drop in equity (stock in companies) value.

Using the RBC Model, what are the impacts on key economic outcomes for 2021. (Outcomes: Labor supply curve, labor demand curve, employment, wages, output, consumption, savings, investment. The impact: increase/decrease/indeterminate/no change) Show underlying graphs

Using the New Keynesian Model Framework, what are the implications on key economic outcomes for 2021. For the money market, use the framework with interest rates on the vertical axis. (Outcomes: IS curve, output, labor supply curve, employment, wages, money supply, money demand, interest rates. Impact: increase/decrease/indeterminate/no change) Show underlying graphs