Due to the COVID-19 pandemic, the U.S. Congress and President Donald Trump had enacted the $2 2 trillion COVID-19 Aid, Relief, and Economic Security Act (CARES Act) on March 18, 2020, which the Committee for a responsible federal budget estimated would be partially responsible for an increase of the budget deficit for fiscal year 2020 to a record $3.8 trillion, or 18.7 percent of GDP 1. Which Aggregate Supply (AS) and Aggregate Demand (AD) diagram below indicates a situation where a recession (a deflationary gap) exists. Use and refer to the trade cycle diagram illustrated in Question 3 to justify and explain your answer. (4 marks) Average Prices Or SRAD, inflation SRAD SRAD POLICY GOALS ..... Growth in demand with covid caused by massive Unemployment US government Spending COVID $3.8 Trillion RECESSION Recession caused by covid in the USA GDP GDP GDP Real GDP= C + 1+ G + X -M ustraliaj Text Predictions: On Accessibility: Investigate