Answer and select a graph for each answer.

In the face of the Covid-19 pandemic, former President Trump signed the bipartisan Coronavirus stimulus relief bill to assist tens of millions of households affected by the pandemic. In addition to other measures, the plan included direct payments of $1,200 directly to each adult earning less than $75,000 per year or $150,000 per couple plus $500 for each child; loans to businesses to continue to pay workers' wages; expansion of coverage of unemployment pension payments to workers who are furloughed because of the corona virus, including part-time and self-employed workers; changes in student loan payments; different accounting rules for pensions; money for the health sector; extension of the deadline for making tax contributions until June; among many other measures that imply a monetary injection or increase in the circulation of money in the economy of $2.2 billion (a total of $1.2 billion). 2 billion dollars (equivalent to 10% of the US GDP!). Subsequently, the current President Biden signed an agreement that reinforced the previous law.

1- What do the Presidents, Congress and the Fed intend to achieve through these measures? 2- From an economic standpoint, what could be expected as a result of these fiscal and monetary decisions? 3- What would the economic stimulus package have apparently achieved so far? Why? 4- What are the risks of this type of expansionary fiscal policy?

Chart A Chart B All else being equal, when tastes change in favor of a good or when consumers' income All else being equal, when tastes change against a good or when consumers' income rises, the demand for that good increases (the demand curve shifts to the right). As a decreases, the demand for that good decreases (the demand curve shifts to the left). As a consequence, the price of the good rises; thus, bidders want to sell a greater quantity of consequence, the price of the good falls; thus, bidders want to sell a smaller quantity of the good offered and demanders want to buy a greater quantity of the good demanded. the good offered and demanders want to buy a smaller quantity of the good demanded. P A P* D' Q* Chart C Graph D All else being equal, when technology progresses or the price paid by suppliers for All else being equal, when technology fails or the price paid by suppliers for inputs inputs decreases, the supply of that good increases (shift of the supply curve to the right). increases, the supply of that good decreases (the supply curve shifts to the left). This This causes the price to decrease, the suppliers are willing to sell a larger quantity offered causes the price to increase, the suppliers are willing to sell a smaller quantity offered and and the demanders are willing to buy a larger quantity demanded. the demanders are willing to buy a smaller quantity demanded. P S.. Ap* D D Q* Q* O