A4. Calculate the long run equilibrium values of r and P, assuming that the potential level of output (16*) is equal to 2300 monetary units. Use the ISILM model and the ADIAS model to illustrate how the economy moves from the short run equilibrium to the long run equilibrium. [15 Marks] A5. An oil price shock causes the price level in the economy to increase from 2 to 2.5. Calculate the new equilibrium values of Y and r. Explain, using the ADIAS model, how the central bank might accommodate this adverse supply shock to stabilize income at its original level in the short run. [15 Marks]