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During pandemic, the economic hit those people who work on highly affected sectors (MS) such us restaurant tourism and those on less affected sectors (LS)

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During pandemic, the economic hit those people who work on highly affected sectors (MS) such us restaurant tourism and those on less affected sectors (LS) such as digital economy. Questi

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1. Policy scenario 1: If the government assistance isdirected towards helping LS activities, what would happen with: I The natural level of output, demand, and ination in LS and MS? I The overall GDP {hence recovery prospect) and saving? 2- Policy scenario 2: The same questions as above but the government assistance is directed towards helping MS activities. 3. If we assume that majority of MS activities are owned and operated by the lowincome households, and LS activities are operated and owned by the highincome households, what is the income distribution implication of the two policy soenarios

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