Use the AD and AS macroeconomic equilibrium model to show, graphically, the short run and long run impact of the economic recession in Japan and South Korea, due to COVID-19 pandemic, on the macroeconomic equilibrium in the Qatari’s economy. Assume that Qatar’s economy was initially operating at the potential level of GDP before the pandemic and there is no government or central bank intervention. Briefly explain.

Use the AD and AS macroeconomic equilibrium model to show, graphically, the short run and long run impact of the economic recession in Japan and South Korea, due to COVID-19 pandemic, on the macroeconomic equilibrium in the Qatari’s economy. Assume that Qatar’s economy was initially operating at the potential level of GDP before the pandemic and there is no government or central bank intervention. Briefly explain.

2. On December 13, 2017, the US Central Bank Chairman, Prof. Jeanette Yellen, announced an increase in the interest rate. Use the money market model to show, graphically, how the US central Bank could achieve this target. Make sure you show the old and new equilibrium interest rates. Briefly explain.