In the context of the ISLM model assume a closed economy defined by the following variables: Autonomous expenditures: (302200, |n=250, 60:200, TRa=100; marginal propensity to consume: c = 0.6; tax rate: t : 0.25; sensitivity of invEstment to changes in income: a = 0.1; sensitivity of investment to changes in the interest rate: b21000; sensitivity of money demand with respect to changes in income: k=0.5; sensitivity of money demand with respect to changes in the interest rate: h=2000; nominal money supply: M2500; price level: P=1 a. Find the equilibrium level of production and interest rate as well as the equilibrium levels for each component of aggregate demand as well as for the different sources of supply of disposable funds. b. Analyze the effects of an increase in the tax rate to 30% (t':0.3) on all endogenous variables of the model. Using graphs represent and explain in detail the adjustment process to the new equilibrium [taking into account that the adjustment in production to changes in income is slower than the immediate adjustment of the interest rate to changes in money supply and money demand}. Compare the initial equilibrium values obtained in a. with those after the increase in taxes, stressing the reasons behind the changes in the different components of aggregate demand and in public and private savings. c. What would have happened to aggregate income with the tax rate changing if the parameter b had been equal to 1100 instead of 1000. Provide some economic intuition for your answer. d. What would have happened to aggregate income with the tax rate changing if the parameter k had been equal to 0,6 instead of 0,5? Provide some economic intuition for your answer. e. What would have happened to aggregate income with the tax rate changing if the parameters h had been equal to 1500 instead of 2000? Provide some economic intuition for your answer f- What would have happened to aggregate income with the tax rate changing if the parameter a had been equal to 0.15 instead of 0.1? Provide some economic intuition for your