4. Consider the AD-AS model Y = Y* - ay(1 - * * ) +ED IT = "+B( Y - Y* )+ES Suppose the parameter values are a = 0.5, y = 2, o = 0.5, / =2 with inflation target * = 0.02 and natural output normalised to Y* = 1. Suppose the economy begins in an initial long run equilibrium and there is then a temporary demand shock ED = 0.04. Compute the short run and long run effects of this shock on output and inflation