(A)Australian Economy has been hit by the COVID-19 pandemic shock. Use an AD-AS framework to graphically illustrate the impact of the pandemic on the economy. (4 marks)

Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium levels; iv. the direction the curves shift; and v. the equilibriums.

(B)Write down the predicted impact on components of GDP (i.e. Y, P , C, r, Iand U).(3marks)

(C) Write down three policies that have been implemented by the government or RBA to deal with the impact of COVID-19 on the economy. Explain briefly what goal each policy is intended to achieve in terms of impact on AD, AS or unemployment?(3marks)