During the pandemic, the following events took place in the UK economy: (1) A fall in household expenditure as businesses were forced to shut down. (2) A drop in business confidence as uncertainty surrounding the pandemic increased. (3) A negative shock to productivity. a) Use the multiplier model to explain and illustrate the possible short-run effects of these events on the UK economy. b) Discuss, and illustrate (using the WS-PS model and Phillips Curve model) how these events are likely to impact the labour market and inflation expectations into the medium- run. Assume that inflation was 1.5% prior to the start of the pandemic