Please solve attached questions

Question 9 Do not pil a beets circulate. freulate. Consider the real intertemporal model with investment. In this model there are two time periods, a representative consumer that chooses consumption and leisure in both periods, a representative ient This file has been firm that hires labour in both periods and invests in the current period, and a government that finances spending with lump-sum taxes in both periods. There are two key markets in this model: a Do not copy w = Current Real Wage labour market that determines the equilibrium wage and employment, and an output goods market that determines the equilibrium level of output and the real interest rate, as shown in Figure 2. been compiled for student Wh This fin Figure 2: Equilibrium in the Real Intertemporal Model with Investment Pope.or circ With ID for student Whyte, Jillian This file has Be Fa Real Interest Rate This file has beer 6237011. Do not colly or airculat 623791 1. r circi Jillian with ID (a) Do not copy of with ID mpiled for Student Whyte, Jillian Jilban nt Why ter has been compiled for student Thi ; file 7011 This file ha W = Current Employment Do not copy 6237011. illian DO een compiled for student Why This file has been compiled for student W late (b 6237011. Do not copy or circulate. provide a detailed explanation of every change in both markets. [10 marks] Figure 2 shows the two markets in equilibrium. Now suppose there is an increase Student Whyte, Jillian in current-period total factor productivity. How are w, N, r, Y affected in equilibrium? In support of your answer, you must draw a graph documenting the equilibrium changes, and Y' = Current Output This file has been com Note: the majority of your grade will be based on your explanation of the equilibrium changes. 6237911. Do not copy or