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As a result of the COVID virus and the economic shutdown, there was a decrease in Aggregate Demand (AD) and a decrease in Aggregate Supply

As a result of the COVID virus and the economic shutdown, there was a decrease in Aggregate Demand (AD) and a decrease in Aggregate Supply (AS).

  1. What was the short-run impact on real GDP? That is, what happened to theshort-run equilibrium real GDP(Y)?
  2. Based on real GDP, what happened tounemployment?
  3. To help alleviate some of the economic issues caused by COVID, Congress passed an economic relief package of over $2 trillion, which provided monetary aid to families and businesses.Using the AD-AS (aggregate demand and aggregate supply) model,which curvedid the relief package shift and inwhich direction?
  4. In the long-run equilibrium, what happens to thelong-run price level?

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