Model analysis: The pandemic has led to a sudden decline (contraction) in demand and economic activity. Use one of the main models covered in class (your choice) to describe the effect of such contraction(s) on macroeconomic variables in the model framework of your choice:

? In the short run (if applicable), and / or

? In the long run (if applicable)

Note: Use figures for the model and comment on any curve shifts from one point to another one when using a given figure. Be specific and provide details about the variables' interactions / effects as well as the model predictions.

The picture below are the topics we learnt this year.

6 1 National Income Accounting and Balance of Payments 2 Exchange Rates: Asset Approach 3 Exchange Rates: Monetary Approach 4 Price Levels and the Exchange Rate in the Long Run 5 Price Levels and the Exchange Rate in the Short Run 6 Fixed Exchange Rate and Foreign Market Intervention 7 International Monetary Systems: Historical Overview 8 Financial Globalization 5 9 Optimum Currency Areas and the Euro 10 Develo and Refor