Given the need for economic recovery plan in response to the macroeconomic devastation of Covid-19 lockdown impacts, let us suppose that the SA government sensibly follows the path being traversed by many of the appropriately engaged countries, by relying largely on expansionary fiscal policy.

b) Suppose that government spending is the expansionary fiscal policy adopted, graphically illustrate its effects from the impact on spending (including the multiplier effect) to its eventual desired outcome real GDP relative to full-employment and/or potential GDP (i.e. long-run aggregate supply [LR-AS]).