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The AD/AS Model: the COVID-19 pandemic and economic lockdown Use the AD/AS model to illustrate the effects of the COVID-19 pandemic and subsequent economic lockdown

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The AD/AS Model: the COVID-19 pandemic and economic lockdown

Use the AD/AS model to illustrate the effects of the COVID-19 pandemic and subsequent economic lockdown. Be sure to explain:

1. what curve(s) shift,
2. in which direction,
3. and why specifically (i.e., what AD and/or AS factors are affected by these events)
4. discuss what will be the effect on Real GDP, unemployment and inflation given the shift(s) you described
5. Finally, include an AD/AS graph to illustrate your answers above.