1.Use the information in these graphs to illustrate how the Canadian economy has changed due to COVID19, in the AS-AD model. Draw the curves before the pandemics and after the pandemics started. Make sure you get the correct directions in which the curves have shifted and clearly show how the equilibrium real GDP and the price level have changed.

2.The government purchases of goods & services G actually decreased slightly due to the coronavirus shutdowns (mainly due to school closures and curtailed government administration). Does it mean that the budget deficit (G - T) has decreased? Why or why not?