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Covid-19 recession hit the US economy in 2020. One of the biggest sectors to be affected was the services sector. Briefly explain what components of
- Covid-19 recession hit the US economy in 2020. One of the biggest sectors to be affected was the services sector. Briefly explain what components of GDP would be affected by the recession.
- According to Production model, state one reason why a pandemic may affect real interest rate r. Please use the first order condition for capital, r = MPK to make the intuition clear.
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