Economic Impact Of The COVID-19 Pandemic

Discussion Post: Economic Shocks And COVID-19.

Using the posted videos and the AD-SAS-LAS model, lead a class discussion of how COVID-19 impacted the short-run and long-run behavior of output/income, the price level, and interest rates at the start of the global pandemic in 2020. Some pundits at the time argued that COVID-19 was to be an exogenous negative supply shock with stagflationary consequences (a rise in both unemployment and inflation) to follow, and other economists argue that COVID-19 would be an exogenous negative demand shock with recessionary consequences to follow soon. Using the videos, outside news articles, your own research, and the AD-SAS-LAS model, which side had the stronger argument or is a conclusion non-determinant? Or, rather than this is one type of shock versus another, is this a case of both shocks happening simultaneously; where each shock is feeding off the other [HINT: Explain using the AD-SAS-LAS model in the context of a circular flow of income model covered in chapter 19]?

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https://economist.zoom.us/rec/play/7Md8Jeqs-mo3GNWXtwSDVvJ6W42-J66s2nIa_fYOzRm3AiJQNgWnN7tGZea2Zfa49-adj0G9kydPmgRb?continueMode=true&_x_zm_rtaid=mWzHvtpCR4imgzRSUTFQMw.1592657165867.3763b9400b5b5ed29c0bc5493aed321a&_x_zm_rhtaid=943. For more information on the Economic Impact Of The COVID-19 Pandemic check on this: https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic

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