1 Equilibrium Analysis 1. The government increases G. Provide the implications of the expansionary fiscal policy on the behavior of households and firms and macroeconomic outcomes. Predict changes in the following variables by the policy change: (C,I,N',N',N, Y., T.w}. 2. A technology advancement increases z. Provide the implications of the total factor produc- tivity rise on the behavior of households and firms and macroeconomic outcomes. Predict changes in the following variables by the policy change: (C,1,N',N,N, Y., T.}. 3. If you compare the results in the previous questions, which factor generates changes in macroe- conomic outcomes that are consistent with data over business cycles?