Go to the following Statistics Canada website-

https://www150.statcan.gc.ca/n1/pub/13-605-x/2023001/article/00001-eng.htm

On this website, you will find data on Support Measures on major programs that the Federal government implements to provide support to Businesses to deal with COVID-19.

1. Use a simple supply/demand model (assume perfect competition) for goods/services provided by businesses. Illustrate the initial impact of COVID-19 on the demand for these goods/services.

2. Describe how the Canada Emergency Wage Subsidy (CEWS) works.

3. Redraw the diagram from 1. and add the impact of the CEWS into the model. Illustrate the likely equilibrium outcome of the CEWS.

4. Examine Chart 5 and explain how wage subsidies evolved during the pandemic.