There is evidence that the inflation that we observed in the past couple of years in the US was primarily the result of COVID$-19-$related supply shocks. The evidence is that inflation was widespread throughout the world and the whole world is also seeing disinflation $($reduction in the rate of inflation$).$ At the same time, fiscal stimulus kept the US economy from going into a long recession during COVID$-19($the COVID$-19$ recession only lasted a couple of months and the recovery was very fast$).$ Let's use the AS$/$AD model to illustrate what I have described.

Events:

$1-$ a strong Covid$-19$ supply shock;

$2-$ a strong stimulus response by the US government;

$3-$ a removal of the Covid$-19$ supply shock.

$4-$ a removal of the stimulus response.

In about one $($not too long$)$ paragraph. Explain how it was possible to: go into a severe recession $(2020),$ come out from it quickly $(2020/2021),$ observe high inflation temporarily$(2022/2023),$ and observe this high inflation go away quickly $(2023/2024).$ You must refer to the model when writing your paragraph. I want to see that you are fluent in using and referring to the model that we used.There is evidence that the inflation that we observed in the past couple of years in the US was primarily the result of COVID$-19-$related supply shocks. The evidence is that inflation was widespread throughout the world and the whole world is also seeing disinflation $($reduction in the rate of inflation$).$ At the same time, fiscal stimulus kept the US economy from going into a long recession during COVID$-19($the COVID$-19$ recession only lasted a couple of months and the recovery was very fast$).$ Let's use the AS$/$AD model to illustrate what I have described.

Events:

$1-$ a strong Covid$-19$ supply shock;

$2-$ a strong stimulus response by the US government;

$3-$ a removal of the Covid$-19$ supply shock.

$4-$ a removal of the stimulus response.

In about one $($not too long$)$ paragraph. Explain how it was possible to: go into a severe recession $(2020),$ come out from it quickly $(2020/2021),$ observe high inflation temporarily$(2022/2023),$ and observe this high inflation go away quickly $(2023/2024).$ You must refer to the model when writing your paragraph. I want to see that you are fluent in using and referring to the model that we used.