The study looked at how inequality, government spending, and COVID19 restrictions affect the economy. In a model where rich people spend more than poor people, inequality hurts economic output and weakens the impact of government stimulus. COVID restrictions can lower GDP even more if businesses shut down due to high operating costs. More inequality means bigger economic losses from restrictions. Government policies work better when there is less inequality and when businesses can cover their costs. Also, COVID restrictions might lead to future inflation as people save money for later.