1) In late 2017, the Trump Administration and the Republican Congress passed a substantial cut in corporate taxes and some personal taxes which took effect at the beginning of 2018. Some of the cuts were permanent and some are to end in 10 years, i.e. in 2028. At the time, the consensus was that the economy was at full-employment. a) In the short run, using the IS-LM model, what would you expect this tax cut to do to GDP and the interest rate? Explain why. In your explanation, assume that the Federal Reserve holds monetary policy constant, i.e. you are analyzing the effect of the tax cut alone. b) In the short run, what should this tax cut do to investment spending and the trade deficit? Explain why. c) In the medium run, using the AS-AD model, what should this tax cut do to the Price Level and GDP in comparison to the levels of those variables prior to instituting the tax cut? Why? d) Over the short-run and medium-run, what would you expect would happen to the budget deficit? Why