D Question 21 15 pts Suppose Australia is a small open economy and capital abundant relative to the rest of the world. In the context of the Heckscher-Ohlin trade model of trade, consider the impact of goods and services tax (GST) implemented by the Australian government. a) Draw the general equilibrium trade diagram to represent GST on the labour-intensive good. (5 points) b) How would the general equilibrium look if instead of GST, we impose value-added tax (VAT) on the labour-intensive good? (5 points) c) Consider the specific factor trade model as a short-run representation of the Australian economy. Given the standard assumptions of the specific factor model, what do you predict the short-run implications of increasing VAT on the labour-intensive good on the return of capital and labour? (5 points) HTML Editor : B JUAY X' X2 WIN - V MVX C O V D 12pt V Paragraph