a. show using the is-lm diagram, the as-ad diagram, and the expectations augmented phillips curve, how this epidemic affected u.s. interest rates, gdp, price levels, inflation rates, and inflationary expectations, both in the short-run and in the long-run. b. during the summer of 2020, the u.s. government and the federal reserve, in order to combat the recessionary effects of covid, embarked on a massive expansion in government spending and the money supply. show how these expansions affected u.s. interest rates, gdp, price levels inflation rates, and inflationary expectations, both in the short-run and in the long-run. assume that the u.s. is starting from a recessionary economy owing to covid. c. discuss some of the long-run negative implications of the large increase in the u.s. budget deficit.
