For a closed economy, consider the following scenarios. Explain the sequence of events in goods and financial market and final outcomes in terms of output Y and real interest rate (r). 1. The government cuts lump-sum income taxes T . Use the IS-LM model and explain step by step what happens in the Goods market and Money (financial) market. If the economy began in equilibrium at (1 1 ). Qualitatively speaking, how does this tax cut change the final equilibrium in the IS-LM model (Hint: Write in terms of comparison of old equilibrium ( 1, '1) with final equilibrium (2, 2) and indicate shifts / movements of IS and LM curve)