B. Coronavirus has led to consumer pessimism with people canceling travel and other consumption plans. Second, it has seriously disrupted work and the production process. (i) (0.1 marks) Identify each of these shocks as affecting named causes (change in expectations, ... wealth) of shocks in our model. For each shock, identify if they affect AD or SRAS or both. As a starting point, draw the initial situation before the shocks as described by the equilibrium of AD, and SRAS. Label the initial equilibrium intersection point of the curves with Ej and the corresponding values Yi* and Pit. (ii) (0.15 marks) Draw in the shift in the curve(s) caused by the shocks. If you shift a curve, label it with subscript 2 (e.g. AD2, SRAS2). Similarly, label the new equilibrium Y, and P; . (iii) (0.15 marks) The analysis in part (ii) is qualitative. Does it unambiguous predict the change in direction of Y, or P, relative to Y and P* ? Briefly, explain (ideally, with an example). B. Coronavirus has led to consumer pessimism with people canceling travel and other consumption plans. Second, it has seriously disrupted work and the production process. (i) (0.1 marks) Identify each of these shocks as affecting named causes (change in expectations, ... wealth) of shocks in our model. For each shock, identify if they affect AD or SRAS or both. As a starting point, draw the initial situation before the shocks as described by the equilibrium of AD, and SRAS. Label the initial equilibrium intersection point of the curves with Ej and the corresponding values Yi* and Pit. (ii) (0.15 marks) Draw in the shift in the curve(s) caused by the shocks. If you shift a curve, label it with subscript 2 (e.g. AD2, SRAS2). Similarly, label the new equilibrium Y, and P; . (iii) (0.15 marks) The analysis in part (ii) is qualitative. Does it unambiguous predict the change in direction of Y, or P, relative to Y and P* ? Briefly, explain (ideally, with an example)