Assume that an economy is initially at a position of long run equilibrium in theaggregate demand and supply modelconsidered in class this semester. Carefully describe the nature of this equilibrium. Explain what will happen if this economy simultaneously experiences anegative shock(a reduction)to the volume of productive resources(due, for example, to a lockdown designed to prevent the spread of a virus) anda negative demand shockwhere consumers and firms both become more pessimistic about the condition of the economy. Do you think a policy response by the government is warranted, and if so, outline one possibility for such a response. Explain how the policy would work. Use appropriate equations and diagrams in your answer.

Can you let me know how I would structure and solve this assignment?