Using the AD/AS model describe and illustrate how Covid would lead to deflation.

Be sure to illustrate a change in both aggregate demand and aggregate supply as a result of the COVID pandemic.

1. In your answer, you must describe a COVID-19 factor that would change each (i) aggregate demand and (ii) aggregate supply, such that deflation results in the economy.
2. Specifically, in your answer you must describe how the two factors that you mentioned above in part (a) would result in deflation.
3. You must draw the changes you described above in a detailed and accurately labelled diagram. You can use Word to draw these sketches (as we have done in the past) and save the images to your computer. You can also use a pen and paper to sketch the imagres, take a picture with your phone, and save that on your computer.