Consider a hypothetical situation at work. To prepare for an upcoming bilateral meeting with government representatives of another country, your manager asks your unit to conduct an economic analysis of the Canadian economy, summarizing any recent findings about financial flows and trade between the two countries. As part of the binder to be prepared for this meeting, your study focuses on the Canadian macroeconomy and capital flows before and after 2020

Model analysis:The pandemic has led to a sudden decline (contraction) in demand and economic activity. Use one of the main models covered in class (your choice) to describe the effect of such contraction(s) on macroeconomic variables in the model framework of your choice:

In the short run (if applicable), and / or

In the long run (if applicable)