Question: please help Consider the Real Intertemporal Model studied in class. Assume the domestic country receives some new machines from a foreign country which contribute to

please help

Consider the Real Intertemporal Model studied in class. Assume the domestic country receives some new machines from a foreign country which contribute to increase the current capital K. 1. How will this increase in capital K affect the Ns, No, Y, and Yo curves? Give the driver of each shift. [05 pts] 2. Assuming the change in Y" is in absolute value more important than the change in Y what is the final impact on the equilibrium output, interest rate employment, the real wage, consumption, and investment? Explain your results. [05 pts]

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