Consider the political budget cycle model with asymmetric information developed in lecture. You may assume that B(G) = In G with B'(G) = and B" (G)=- A policy maker requires that you explain the economic intuition behind the graph provided below. 2) G Perceived as L Perceived ac m Gther B- Got er 8' (6)= G = OH G = t t2t en t=1 M G = t E a) (4 pts.) Provide a brief overview of the model by describing the key players, their objective(s) and the nature of their interaction. b) (2 pts.) Briefly explain the economic significance of the shape of the B(G) function. c) (2 pts.) Briefly define the function by stressing the role of B- d) (2 pts.) Briefly explain the economic significance of the different slopes of G = B and G=