COVID-19 has affected both AD and aggregate supply (AS). (i) Draw a simple AS and AD diagram to show how they might have shifted. Draw in MS Word or draw on a piece paper, photograph, and paste the image in your answer document.

(ii) Based on the diagram, comment on how GDP and the inflation rate would have changed. (2 marks) 4. For 2020, Australia's inflation rate is expected to be 1.43%. If a loaf of bread in the supermarket was A$4 at the start of 2020, what will its price be at the end of 2020? Show your workings by typing it, or by writing it on a piece of paper, taking a photograph of it, and pasting it in your answer document.