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2. Use an aggregate supply / aggregate demand diagram to answer the following ques- tions. (a) Suppose that government locks down the economy in response
2. Use an aggregate supply / aggregate demand diagram to answer the following ques- tions. (a) Suppose that government locks down the economy in response to COVID-19, result- ing in millions of Canadians being temporarily laid off from work. Explain the short-run and long-run effects of this policy. (10 points) (b) Suppose that the government mandates vaccines for workers, causing 5% of workers to exit the labour force. Explain the short-run and long-run effects of this policy. (10 points)
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