ABSTRACT
The coronavirus pandemic (2020–2022) caused widespread disruption to economies. Economists model the macroeconomy with aggregate supply and aggregate demand, demonstrating the behavior of the economy's output (measured with real gross domestic product) and the average price level (measured by a consumer price index). Before the onset of the coronavirus pandemic, many economies in the world were operating at full employment. But the pandemic decreased economic activity. As a result, governments implemented expansionary fiscal policy to stimulate household spending. After inflation rose, governments implemented contractionary monetary policy. At the beginning of the pandemic, the networks of globalization, which include human transmission networks, facilitated the spread of the novel coronavirus.
