An epidemic forces a country's government to require that firms in sector H (the Hospitality Industry, say, restaurants and theaters) invest in social distancing provisions and expensive ventilation systems. a. What will be the primary microeconomic effect of the shock on prices and output in sector H? What will be the secondary effect on sector C, which consists of goods and services complementary of those provided by sector H (say, elegant clothing), and on sector S, which consists of goods and services substitutive of those provided by sector H (say, online entertainment and online shopping)? Taking into account that the secondary effect of the shock on sector C is expected to Initially dominate that on sector S, what would you expect it to be the initial macroeconomic effect on prices, GDP, unemployment rate and interest rate? Supplement your argument with an AS-AD diagram. b. How would you expect that the levels of economic activity and prices will initially evolve if the government responds to the above shock with expansionary monetary policy and subsidies targeted to H as well as an expansion of automatic unemployment benefits? . Suppose that as the economy recovers in the long run, sectors H and C mostly recover as well, but a more permanent substitution of in-person services provided by H by home-delivered goods provided by S takes place, which strains supply-chains connected to the increased production and transportation of these goods. What are the likely macroeconomic consequences of the Increased costs resulting from the supply-chain disruption? d. What alternatives does the government have in dealing with the dilemma presented by the supply-chain disruption described in part 37