In the real business cycle model, suppose the government spending increases temporarily. 1. Determine the effect on labour market, holding the interest rate constant? [5 pts] 2. Explain what impact this temporary increase in government spending has in the goods market, holding the interest rate constant? Illustrate with graphs. [10 pts] 3. Suppose that the interest rate increases in response to this temporary increase in government spending. How will it affect the labour market and the goods market? Illustrate with graphs. [5 pts] 4. Argue that the price level could go up or down. Specify the conditions under which the price level goes up. Illustrate graphically. [ 6pts] 5. Determine Whether investment and average labor productivity increases or decreases. [2 pts} 6. Are these predictions consistent with the business cycle facts? (Draw a table) [7 pts]