Beta is a closed economy with flexible prices. described by an IS-LM-PC model with and Initially in a medium run equilibrium position. Suppose now that a new anti-trust legislation is passed, leading to a decrease in firms parket power, At the same time, Beta also experiences a permanent decrease in the autonomous component of investment. Having discussed which of the curves represented in the IS-LM-PC diagram will be affected by these 2 changes, and how, define the concept of natural (or "neutral, or "Wicksellian") real rate of interest. How will have changed in the new medium-run equilibrium now prevailing in Beta? Provide the economic intuition behind this change in the natural interest rate and discuss how investment will have changed in the move from the initial to the final medium-run equilibrium, Explain