Q1 A) Illustrate the short-run and long-run impact of the Covid-19 pandemic (unexpected demand shock) to Thailand using both the AD-AS model and the Phillips curve. Assume the Thai economy starts at full employment. B) How would an adverse supply shock change the short-run tradeoff between inflation and unemployment? Illustrate your answer using a Phillips curve diagram.

ENGR.ECONOMIC ANALYSIS
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A) Illustrate the short-run and long-run impact of the Covid-19 pandemic (unexpected demand
shock) to Thailand using both the AD-AS model and the Phillips curve. Assume the Thai
economy starts at full employment.
B) How would an adverse supply shock change the short-run tradeoff between inflation and
unemployment? Illustrate your answer using a Phillips curve diagram.
Transcribed Image Text:Q1 A) Illustrate the short-run and long-run impact of the Covid-19 pandemic (unexpected demand shock) to Thailand using both the AD-AS model and the Phillips curve. Assume the Thai economy starts at full employment. B) How would an adverse supply shock change the short-run tradeoff between inflation and unemployment? Illustrate your answer using a Phillips curve diagram.
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