This is a file upload question. Write down your solution in…

This is а file uplоаd questiоn. Write dоwn your solution in а piece of paper, take a picture and upload your file.  IMPORTANT: typed solutions will not be accepted!    The Covid-19 pandemic started in March of 2020. On top of million of deaths due to the novel coronavirus, economies suffered a great deal with the pandemic.  When the pandemic first hit the economy, the U.S. government took steps to deal with the economic crisis enacting the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in 2020, which included resources for small and large businesses, as well as expansion of unemployment benefits, and significant direct payments to low and middle income families. Based on what you learned in the class (use the concepts that you learned in class to answer the questions), answer the following:  Is the CARES Act a Monetary Policy or a Fiscal Policy? Justify by explaining who implemented it, what mechanisms were used, and how those mechanisms influence economic activity.  Is this policy an expansionary or a contractionary one? Justify your answer explaining what problem was it trying to solve in the economy and what effect was it intended to have on spending and output.  What was the expected impact of this policy in the economy? Explain by graphing the AD/AS model. In order to get full credit you must draw the graph as taught in class, correctly label the axis and the curves, and show the impact of this policy on output and price level.