Question: please help! Consider the real intertemporal model with investment. In this model there are two time periods, a representative consumer that chooses consumption and leisure

please help!

please help! Consider the real intertemporal model with investment. In this model

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 rm that hires labour in both periods and invests in the current period, and a government that nances spending with lumpsum taxes in both periods. There are two key markets in this model: a 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. gure 2: Equilibrium in the Real Intertemporal Model with Investment F\" HIEIIIHIItErnplnymnnt FICurr-nlutput {I} {II} [ll] marks] Figure 2 shows the two markets in equilibrium. Now suppose there is an increase in current period total factor productivity. How are w, M, r, 'I" affected in equilibrium? In support of your answer, you must draw a graph documenting the equilibrium changes, and provide a detailed explanation of every change in both markets

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