Problem
A. COVID-19 has disrupted the global supply chain causing major delays in the supply of raw materials and finished goods for many Australian businesses and households. Explain the short-run and long-run effects of such supply disruptions on real GDP and inflation. Support your explanation with relevant graph(s) (properly labelled hand-drawn graphs are recommended)
B. Based on the above explanation and graph(s), what are the impacts of the supply disruption on Australia's inflation and real GDP in (a) the short-run, and (b) in the long-run.