Explain the macroeconomic impact of the 2020 COVID Crisis on the US economy, discussing the government policy response and the implications for one sector of the US economy.

Identify one of the initial direct effects (shocks) of the COVID crisis on the macroeconomy and describe the circumstances surrounding the specific effect you selected. Analyze the impact of this shock by using the AD-AS model and its corresponding diagram.Describe the impact on the aggregate price level and output and identify the resulting short-run equilibrium in a diagram. Assume that the economy was in long- and short-term equilibrium before the shock.

Note:For this assignment, assume the United States is a completely closed economy for simplicity.