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 exogeneous 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 be one type of shock versus another, is this a case of both shocks happening simultaneously; where each shock if feeding off the other [HINT: Explain using the AD-SAS-LAS model in the context of a the circular flow of income model covered in chapter 19]?
https://event.on24.com/eventRegistration/console/EventConsoleApollo.jsp?&eventid=2294337&sessionid=1&username=&partnerref=&format=fhaudio&mobile=&flashsupportedmobiledevice=&helpcenter=&key=C4FB15772FD6CB993F6A352B1E0B1841&newConsole=false&nxChe=true&text_language_id=en&playerwidth=748&playerheight=526&eventuserid=301987075&contenttype=A&mediametricsessionid=271487093&mediametricid=3241660&usercd=301987075&mode=launch
https://economist.zoom.us/rec/play/7Md8Jeqs-mo3GNWXtwSDVvJ6W42-J66s2nIa_fYOzRm3AiJQNgWnN7tGZea2Zfa49-adj0G9kydPmgRb?continueMode=true&_x_zm_rtaid=mWzHvtpCR4imgzRSUTFQMw.1592657165867.3763b9400b5b5ed29c0bc5493aed321a&_x_zm_rhtaid=943
