COVID-19's Double Impact: How Demand and Supply Shocks Shape Economy
This article explains how the COVID-19 pandemic caused a big economic downturn by hitting both supply and demand at the same time. The researchers created a simple model to help students understand this complex situation. The model shows how the lockdowns led to a shortage of goods and services (supply shock) and people spending less money (demand shock). This unique model focuses on demand but can also handle supply issues without making things more complicated.