7.1. [0.5 points] Given your knowledge of Economics, which is your diagnosis of the nature of the macroeconomic shock(s) during the corona crisis in the U.S.? How is it affecting firms and households?

Use the model of AD-AS to trace thorough the short-run and long-run effect of a shift on output and the price level due to Shock(s) (graphical and verbal answers, 15 lines).

7.2. [0.5 points] Recommend two policy interventions that could move the economy back to full-employment output. Argue why they might work (verbal answers, 7 lines).