As the world learns to live with the novel coronavirus (COVID-19), policymakers need to

understand the macroeconomic consequences of the pandemic. The COVID-19 pandemic

shocked both production and consumption. Various countries adopted different strategies to

deal with this pandemic. In this example, you are going to focus on a zero-COVID strategy,

that aims to effectively eliminate the virus from the population by quarantining the sick and

locking down entire cities, regions, states, or countries.

Consider what would happen if the country's central bank is worried about a potential

recession. What policy could it employ to mitigate its effect? Draw it in your diagram.