Can you please find the solutions for all 4 questions please?

3 Two-Period Model with Endogenous Out- put Using the Real Intertemporal Model seen in class, sup- pose the government announces a decrease in future government spending 6" while keeping the current spend ing G unchanged. 1. *'k m How will you expect the decrease in G' to affect the N', N d, Y5, and Yd curves? Show on well-labeled graphs and explain the driver (rea- soning) of each shift. 2. it n Assuming that the change in Yd is larger than the change in Y3 in magnitude, what are the equilibrium effects on Y' and r"? Show on a graph and state clearly whether Y' and 3-\" increase or decrease. 3. int Taking into account the nal adjust- ment in the labour market (due to the movement in r), do you think the equilibrium employment will increase or decrease? Justify your answer and show the expected change on the labor market graph. 4. *'k a Bonus question: What are the equi- librium effects on consumption C\" and investment 1\"? Explain with words