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Part a. Is the 'COVID-19 shock a 'demand' shock or a 'supply' shock? Suppose that you have data available on aggregate output (also referred to
Part a. Is the 'COVID-19 shock a 'demand' shock or a 'supply' shock? Suppose that you have data available on aggregate output (also referred to as the Gross Domestic Product (GDP)) and the aggregate price level, P, for the months following the COVID shock in March 2020. What association between these two might reveal that the COVID-shock is a predominantly a demand shock or predominantly a supply shock? Explain clearly. Part b. Are the following statements 'True', 'False' or 'Uncertain' (sometimes true, sometimes false)? Points are for only for the quality of your reasoning/explanation and not for merely stating True, False, or Uncertain. ( i) Universal Basic Income (UBI) is a form of an automatic stabilizer. [ ii) The COVID-19 pandemic can disrupt labour markets and globalization for many years to come. [Maximum: 100 words.] (iii) Mask mandates have epidemiological impacts but no economic impacts
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