Question 1C What does it mean Will SRAS Curve Shift? Which Direction will (Short Run Production (Yes/No) SRAS curve shift increase/ Short Run (right/left) Production decrease)? Why? Price of Oil and Gas Increases Price Expectations Increase X Scanned with CamScanner Answer 2) Steps Your Answers Step 1) What happens in the short run to equilibrium price level and aggregate quantity & why? (Think about which curve shifts in which direction and why & where is the new short run equilibrium?) Step 2) What happens to the initial equality between price level and price expectations because of COVID197 Step 3) What happens to price expectations in the long run? (The market adjustment phase) Step 4) What happens next in the market adjustment phase? (Think about which curve shifts in which direction and why & where is the new short run equilibrium?) Step 5) What policies (you have to say who takes these policies; congress/federal reserve) will be taken to stop the market adjustment from kicking