Read the article "Reeling World Economy Slammed by Dangerous Disinflationary Shock".

a.What combination of aggregate supply and/or aggregate demand shocks could produce both a recession and falling prices?

b.Some commentators in the article said that the long run response to the virus would be inflationary.Why could the long run response be different from the short run response?Use an AS-AD diagram to show the position of the economy in both the short run and the long run.