Answer this question from Canadian Perspective. Assume Canada is at its long-run equilibrium position with equilibrium output at full employment level Y,unemployment at natural rate U, and price level at P. Suppose a strange corona virus hits Canada (none of the other countries are affected) such that infected people may get sick and they may die. In order to stop the spread of virus, all three level of government enforce social distancing. Canadians are not allowed to travel out of Canada and other countries ban Canadian visitors from entering (but trade flows and financial flows with other countries are not affected). Answer this question based on theories/concepts/models covered in macroeconomics. You must relate to every point and curve in your graph.

1.Use properly labeled graphs to help you explain how the virus would affect the equilibrium output, price level,interest rate, exchange rate, trade balance, government budget balance, and unemployment rate in the short run.

2.use one of your graphs in part (1) to help you explain how the Canadian economy can restore full employment output on its own without any govt. or central bank intervention.

3.use properly labelled graph to help you explain how Bank of Canada can help to speed up the economy recovery and restore full employment output. Explain the pros and cons of this kind of central bank intervention.