A)Australian Economy has been hit with the COVID-19 pandemic shock. Use an AD-AS framework to graphically illustrate the impact of the pandemic on the economy in the absence of government policies. 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 expected impact on components of GDP (i.e. Y, P , C, r, Iand U) in the absence of policies.

(C) Two policies that government have implemented to deal with the impact of COVID-19 on the economy are "Job Seeker" and "Job Keeper". In what way each policy is intended to impact on AD, AS and unemployment?