Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to recover from the negative effects of this COVID‐19 pandemic. Your answer must include the following:  The description of the type of fiscal policy required;  An explanation of how the implementation of this tool will work their way through the economy to achieve the desired effect;  The AD‐AS graph showing the implications of your recommendations.

Question

Explain, using the AD‐AS model, how the South African Government can use fiscal policy as a tool to recover from the negative effects of this COVID‐19 pandemic.
Your answer must include the following:
 The description of the type of fiscal policy required;
 An explanation of how the implementation of this tool will work their way
through the economy to achieve the desired effect;
 The AD‐AS graph showing the implications of your recommendations.

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