According to the following text abstracted from the news reported by Reuters on 14 Apr 2020, entitled "Coronavirus: 5 predictions for ho the economy might recover":

Of more than 50 economists polled by Reuters, some forecast the world economy will shrink as much

as 6% in 2020. The other extreme was a prediction for 0.7% growth. The average was a 1.2%

contraction

Please answer the following questions based on the above news.

(a) How does the current pandemic affect AD curve? Why?

Short run analysisWe firstly concern on how the Covid-19 affects the short run economic performance:(b) Please draw ashort run aggregate supply(SRAS) and an aggregate demand (AD) in a "AD-AS" model.

Then, show the original equilibrium price level (P1) and output (Y1) on your diagram.

Hint: AD-AS model shows the relationship between price level and output

(c) What is the effect of the pandemic on equilibrium price level and output in the short run? Please show the new short run equilibrium price level (P2) and output (Y2) on your diagram.

Long run analysisWe now turn our focus on impacts of Covid-19 on long run economic performance:(d) Please draw along run aggregate supply(LRAS) and an aggregate demand (AD) in a "AD-AS" model.

Then, show the original equilibrium price level (P3) and output (Y3) on your diagram.

(e) What is the effect of the pandemic on equilibrium price level and output in the long run? Please show the new long run equilibrium price level (P4) and output (Y4) on your diagram.