(d) Redo part (c) but now assume that the government adjusts to balance the budget. Assume that the economy is on the upward sloping part of the Laffer curve. Explain the intuition. (e) Assume that an anti-government party wins the elections and achieves control over macroeconomic policy. Assume that the new government cuts the num- ber of civil servants and uses the cost savings to reduce the marginal tax rate on labour. Show what happens to the economy in the short run.