Using the model of business fluctuations, show the effect of the COVID-19. Recall that COVID-19 shut down production in a series of important U.S.  industries and caused considerable job losses. Fear of the virus caused Americans to travel less, buy fewer personal services, and consume fewer restaurant meals.  (b) The Fed responded to the economic effects of COVID-19 by cutting interest rates while Congress passed a large relief package (i.e., an increase in government spending). Show each of these effects on a separate diagram.

Q: As part of Budget 2018, the Government of Canada introduced the Canada Workers Benefit (CWB) that…

A: As a part of budget 2018, the government of Canada introduced the Canada Workers Benefit (CWB). CWB…

Q: Which event would shift short-run aggregate supply to the right? (a) A labor shortage puts upward…

A: The short-run aggregate supply (SRAS) curve represents the positive relationship between the price…

Q: Suppose you have $150,000 in a bank term account. You earn 5% interest per annum from this account.…

A: Since there are multiple questions posted, we will answer to only the first one.

Q: 5) If the sacrifice ratio is high, a program to reduce inflation is likely to have higher costs zero…

A: The program to reduce the inflation has higher cost, when the cost of sacrifice ratio is greater.