#1: At the end of 2019 (before the rapid spread of the Coronavirus) was the United States economy operating in the Keynesian, intermediate, or neoclassical portion of the economy’s Short Run Aggregate Supply Curve?-Explain your answer carefully using the data and information that you have gathered regarding real GDP, unemployment, the GDP deflator, and inflation in the previous discussions. You should discuss the concepts of potential GDP (Links to an external site.) and the natural rate of unemployment (Links to an external site.) to receive full credit. How close was the economy to potential GDP? For the data on real GDP and the GDP deflator use the information from the fourth quarter of 2019. (Links to an external site.) For monthly variables such as the unemployment rate and the Consumer Price Index use the figures for December 2019. The recession of 2020 began in the first quarter of 2020.The relevant economics statistics that you should discuss include the level and growth rate of real GDP, the unemployment rate, and the inflation rate at a minimum. You are encouraged to discuss and evaluate other economic indicators such as measures of consumer confidence (Links to an external site.), industrial production (Links to an external site.), and stock market indices that could add to a more complete picture of the state of the economy as of the beginning of our course. #2: How did the large decrease in aggregate demand during the first and second quarters of 2020 (the Coronavirus demand shock) affect real GDP and the price level? Explain how and why the spread of the Coronavirus made an impact on consumer and business investment spending as well as overall aggregate demand? Be specific.-Hints: The data indicated that the U.S. economy was operating close to or at Potential GDP at the end of 2019 before the advent of the Covid-19 crisis. The actual unemployment rate was below estimates of the natural rate of unemployment indicating that the economy was at the edge of the Neoclassical Zone.Much of the basic information that you need to complete this question should be available to you from previous discussions although you are encouraged to refer to other online sources. The FRED website is a valuable source for current economic statistics: https://fred.stlouisfed.org/ (Links to an external site.) Trading Economics (Links to an external site.) is also useful resource.