For the closed economy, one period model, suppose that U(C, l) ln C l, and F(K, N) zK N 1 , where 0 and 0 1 Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions ...

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For the closed-economy, one-period model, suppose that U(C, l) = ln C + l, and F(K, N)

Question:

For the closed-economy, one-period model, suppose that U(C, l) = ln C + βl, and F(K, N) = zK^α N^{1 – α}, where β > 0 and 0 < α < 1. Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions.

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