Due to the global pandemic, china faces GDP growth for 2020 Q1
to fall by 6.8% year-on-year basis while producer prices for march
2020 also declined by 1.5% year-on-year. Use an closed-economy
AD-AS Model to analyse what has happened to china economy. Explain
how the event affects the curve in AD-AS Model, taking into
consideration of both initial impacts and the subsequent government
interventions. Make sure the final short-run equilibrium is
consistent with the data mentioned.