I think the assumptions that:
1) There are only two states for the economy, "open", and "closed", and
2) That this change of states will happen everywhere at the same time
Are flat-out incorrect.
That said, there are 3 macro-level outcomes:
1a. Relax too much too soon - potentially the worst-case scenario: infections spike, we overwhelm hospitals, people freak out, AND we end up re-closing things on top of that(or things stay closed because people are scared to go out in public)
1b. 1a minus the panic: many, many more deaths, but the most aggressive economic economy
2. Keep too much closed too long - excess economic damage, businesses collapse, and it ripples due to loans imploding, etc.
3. Some sort of middle road, which involves reopening what we think can, where we think we can safely do so based on the situation on the ground. This requires federal/state governments in supporting roles, developing guidelines, providing resources, and local governments executing. The premise here is that not all businesses have an equal transmission risk vs. economic benefit tradeoff during a pandemic, and the needs of communities may be different based on certain risk factors(density, public transportation, etc.)
The basic premise behind #3 is that cramming a bunch of people into small spaces during a pandemic is a pretty terrible idea, but there are also a lot of businesses where that's not an issue, or can be mitigated significantly through changes to the way they operate - and that can get us started on a better trajectory.