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a) There is a pandemic in a country. The pandemic operates simultaneously as a negative demand shock and a disruption to supply chains (temporary cost

a) There is a pandemic in a country. The pandemic operates simultaneously as a negative demand shock and a disruption to supply chains (temporary cost shock). Assume that the exchange rate is floating. By using a set of graphs, illustrate the effects on equilibrium output, interest rate, inflation, and the exchange rate.

b) What would be your policy recommendation based on the scenario described in scenario a)?

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