Question: task 2 Draw a figure that describes a standard capital market. Name the axes and curves. Mark the market equilibrium {r *, K *} and

task 2 Draw a figure that describes a standard capital market. Name the axes and curves. Mark the market equilibrium {r *, K *} and explain what K * expresses. then Show the effect graphically in this capital market of a boom. Briefly explain what is happening task 3: The main purpose of economic policy is to reduce the output gap. Under what conditions is the expected economic effect of economic policy most favorable? Explain why. here is 1 of each

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