4. Use general equilibrium analysis for this question with the help of the Harberger Model. Assume sector X is the corporate sector and sector Y is the non-corporate sector and capital and labor is fixed between the two sectors. Assume for the life of this problem that (LX/Kx) > (Ly/Ky). a. Show below the output effect of a partial factor tax. Specifically, a tax on capital in the corporate sector. Be sure to label all axes and curves. Is there an impact of this tax on r/w? (6 points) b. Explain the factor substitution effect of this tax on capital in the corporate sector in words. What can you say about r/w in the long run as a result of the tax? (4 points) c. Using the Harberger Model, we would conclude that a very large decrease in the corporate profits tax (a tax on capital in the corporate sector) could be good for workers. Explain whether or not we found this with the reduction in the profits tax from 35% to 21% in 2017? What worked or didn't work with our Harberger Model assumptions? (4 points) d. Explain specifically how we could change the Harberger Model to make it work more effectively. (6 points)