Real labor income in any period is given by nominal labor income divided by a price level. Assume that the budget is given by Pic, + Pacz = Y. Illustrate how the budget constraint (in a two good case) is affected by the following events. (a) The price level in period 1, Pi, rises, while P2 is held constant. (b) The price level in period 2, P2, rises, while Pi is held constant. (c) Nominal income is taxed at a rate of Ty. (d) Consumption of good 1 is taxed (sales tax) at a rate of 71.Real labor income in any period is given by nominal labor income divided by a price level. Assume that the budget is given by Pic, + Pacz = Y. Illustrate how the budget constraint (in a two good case) is affected by the following events. (a) The price level in period 1, Pi, rises, while P2 is held constant. (b) The price level in period 2, P2, rises, while Pi is held constant. (c) Nominal income is taxed at a rate of Ty. (d) Consumption of good 1 is taxed (sales tax) at a rate of 71