Suppose the economy is initially in a long-run equilibrium. Using the AD-AS framework, show graphically what happens to output, unemployment, and the price level when there is an adverse supply shock such as a persistent increase in intemational oil prices due to a war in oil producing countries {think of Russia's war with Ukraine]. (16 points total, including 4 points for the graph.) Indicate in the space provided what happens to the following variables {whether it increases, decreases or remains unchanged) in the short run after the shock occurs, and in the nal long run equilibrium. Short Run Eg. Graph: {use only graph to show the initial, short run and long run equilibrium) Output Unemployment Price Final Long Run Eg.* *Indicate below the direction of change in the variables as the economy moves from the short run to long run equilibrium and also the nal values of Y and u. Show any changes in the graph as the economy moves from short run to long run equilibrium. Output Unemployment Pric e If the government wants to prevent an econornic contraction to occur in the face of the adverse supply shock, or alternatively, if it wants to speed up economic recovery, stabilize output, and push the economy back to long run equilibrium, what should be its policy response? If the government indeed adopts this policy, how will the curves be affected (which curve shifts)