Question: 3 Two-Period Model with Endogenous Out- put Using the Real Intertemporal Model seen in class, sup- pose the government announces a decrease in future government

3 Two-Period Model with Endogenous Out- put Using the Real Intertemporal Model seen in class, sup- pose the government announces a decrease in future government spending G' while keeping the current spend- ing G unchanged. 1. **k 10 How will you expect the decrease in G' to affect the NS, NO, Ys, and Y curves? Show on well-labeled graphs and explain the driver (rea- soning) of each shift

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