Economists and businesses believe that the second wave of the Covid-19 pandemic would affect the country's economic pillars-export, investment and private consumption-severely, as the tenure of the wave is likely to be longer.

Some of the major trading partners of Bangladesh (mainly the European countries) have reintroduced either lock downs or equivalent steps amid rising virus infections and deaths. These countries have already squeezed overall supply and demand due to the impact of the second wave of the pandemic, resulting in an adverse impact on Bangladesh's export and investment.

The second wave has already reduced the export orders of the ready made garment sector by 30%. Zahid Hussain, former lead economist of the World Bank Dhaka office recently commented "Export, investment and private consumption sectors will ... be affected severely very soon as the consumers' confidence is reducing gradually."

(a) With regard to the above excerpt, how do you think the real wage rate and the real GDP of the Bangladesh economy will be affected? Explain and Illustrate your answer with an appropriate diagram.

(b) Based on the above, how do you think the AD-AS model would change AND mention the kind of output gap that the economy might experience?

(c) To help stabilize the economy, Bangladesh government has already been providing million-dollar stimulus packages to its booming industries in the midst of the pandemic. It is also necessary for the government to channel funds and stimulus packages to the country's effective and productive sectors. Explain briefly and list the areas in which the government should invest to increase the economy's productivity and the potential GDP.