Q.5.1 The economic uncertainty created by COVID19 has in turn caused consumers to reduce their consumption. If there is no policy response, use the AD-SRAS-LRAS diagram to discuss short run and long run impacts on general price, real GDP and unemployment. Clearly label you graph present a short (concise) paragraph to accompany your graph. {15 Marks)

Q.5.2 Discuss the possible government response to the adverse consumption shock caused by COVID-19. Use an AD-SRAS-LRAS diagram to support your discussion. {15 Marks}