Country : New Zealand
CONTEXT
The COVID-19 pandemic forced most economies to rigorously pursue social distancing practices, close borders for international travel, and to shut down business venues for public gatherings such as cafés, restaurants, gyms and cinemas. The result is a global recession now known as the Great Lockdown. As of June 2020, the International Monetary Fund projected in the World Economic Outlook Update a 4.9% contraction of the world economy this year, as compared to 0.1% during the 2009 Global Financial Crisis. Governments and central banks around the world have taken various policy actions to limit the contraction of their economies on the one hand, and to speed up their recovery on the other.

3. The Impacts of the COVID-19 Shocks (~800 words)
Use economic models and theories covered in this course (e.g. AD-AS model, neoclassical growth model, etc) to explain how the pandemic affects the demand and supply side of the economy.