This question is based on the current Covid-19 pandemic. Thepandemic will cause a recession. Provide two examples of sectorsthat will be particularly badly hit by this. Provide also twoexamples of sectors that will benefit from this. Use the businesscycle model we saw in class (inflation on the Y axis and real GDPgrowth on the X axis) to show the effects of the pandemic on thewhole economy. Think about it carefully: is there going to be anyeffect on aggregate demand? Why? Is there going to be any effect onaggregate supply? Why? Show the shift(s) on the graph and point outwhat we can expect to happen to GDP growth and inflation in theshort run.
