Consider an economy in a One-Period Model that is at the competitive equilibrium CE0 with consumption good equal to C0 and leisure equal to l0. a) Depict the equilibrium CE0 in a graph b) Now suppose that a new legislation reduces government spending. Depict the effects of this change in the graph (only need one graph for part (a) and (b)). c) How does a decrease in government spending affect the levels of consumption and leisure of the representative consumer in this economy? Explain intuitively. d) How does a decrease in government spending affect the hours worked and output in this economy? Explain intuitively. e) How does a decrease in government spending affect the real wage in this economy? Explain intuitively. Consider an economy in a One-Period Model that is at the competitive equilibrium CE0 with consumption good equal to C0 and leisure equal to l0. a) Depict the equilibrium CE0 in a graph b) Now suppose that a new legislation reduces government spending. Depict the effects of this change in the graph (only need one graph for part (a) and (b)). c) How does a decrease in government spending affect the levels of consumption and leisure of the representative consumer in this economy? Explain intuitively. d) How does a decrease in government spending affect the hours worked and output in this economy? Explain intuitively. e) How does a decrease in government spending affect the real wage in this economy? Explain intuitively