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The pandemic has been characterized by both negative supply and negative demand shocks.Many economic activities have been restricted by government order.Inflation in the Euro-zone remains

  1. The pandemic has been characterized by both negative supply and negative demand shocks.Many economic activities have been restricted by government order.Inflation in the Euro-zone remains stubbornly negative.Explain what generic short-term macroeconomic fiscal policy actions Euro-zone governments (fiscal not monetary authorities) should take to reduce the immediate impact of the crisis and what longer-term actions they should not take if interest rates remain at or near zero.

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