On March 4, the International Monetary Fund (IMF) and the World Bank held a joint news conference on the impact of the COVID-19 on the global economy and the responses from global governments and central banks.

The policy tracker page in the IMF website summarizes the key discretionary fiscal and monetary policies that governments are taking to tackle the economic impacts of the COVID-19 pandemic. Consider the following examples.

1. In U.S., an estimated of US$2.3 trillion (around 11% of GDP) of Coronavirus Aid, Relief andEconomy Security Act ("CARES Act") was passed. It includes tax rebates to individuals,expanding unemployment benefits, and so on. Use the AD-AS diagram to explain the impact of impact of the policy.(10%)