Question

Will the shift of SRAS to the right tend to make the equilibrium quantity and price level higher or lower? What about a shift of SRAS to the left?

Short answer

When the aggregate supply curve changes to the right, a bigger amount of real GDP is created at every price level.

When the SRAS curve changes to the left, the amount of real GDP produced at each price level decreases.

Step-by-step solution

Introduction 

Short-run aggregate supply (SRAS) is a graphical model that depicts the positive link between an economy's aggregate price level and the amount of aggregate output it produces.

SRAS curve representation

The curve is

Real GDP is plotted on the $x-$axis, while price level is plotted on the axis in the diagram above.

Shift of SRAS

Equilibrium $E_0$is achieved by intersecting AD and $SRA{S}_0$.

$Y_0$represents output, whereas $P_0$represents price level.

Equilibrium changes from $E_0$to $E_1$when the SRAS curve moves leftward from SRAS to $SRA{S}_1$.

Price level climbed from $P_0$to $P_1$as a result of the shift to the left, but GDP declined from $Y_0$to$Y_1.$