In this question, you will put into practice your knowledge of the effects of the fiscal policy. Consider the US economy in the context of the two-period model with investment and government. We will model the effects of the COVID-19 pandemic on the US economy and evaluate the effect of government intervention. Answer the following question that will guide you along the way. a Suppose that the COVID-19 pandemic negatively affected the TFP of the US economy. How does this affect labor demand and why? Draw a diagram to justify your answer. Hint: Remember that the labor demand is determined by the marginal product of labor, MPL = zF(K,N) N