1. COVID-19 has disrupted the global supply chain causing major delays in the supply of raw materials and finished goods for many Australian businesses and households. Explain the short-run and long-run effects of such supply disruptions on real GDP and inflation. Support your explanation with relevant graph(s)(properly labelled hand-drawn graphs are recommended). (5 marks)
2. Based on the above explanation and graph(s), what are the impacts of the supply disruption on Australia's inflation and real GDP in (i) the short-run, and (ii) in the long-run. (2 marks)