nullQuestion 4 Conslder the standard One-period model with consumptio1 and leisure, and the standard two-per iod nodel with consunption and savings (witlhout leisure). Assume that the government replaces the lump-sum tax with a proportional income tax. (1) Is the proportional incone tax distortiomarv in the oe-period model? Explain why or why not and draw the graph. (10 marks) (0) ls the proportional income tax distortionary in the two-period mocLei Explain why or why not and draw the graph. (10 marks) Total: 20 marks END OF PAPER