During the COVID-19 pandemic, many countries experienced a recession in the first quarter of 2020. Starting with an initial equilibrium in the fixed-price IS-LM model for a country with no foreign sector, examine the impact of the pandemic on output and employment by showing how the IS and LM curves would have shifted without policy intervention by policymakers. In particular, talk about how the pandemic affected consumer and business demand and which curves shifted and in what directions (indicated with arrows) as a result. On the same graph, show how the various policy interventions reversed the IS and LM curves.
Draw a graph to show the trend of LM and IS, and explain the measures and direction of the United States during the epidemic through several points.