01 Household utility maximization 5 Points A representative household receives utility from consumption (3 and supplying labor I: U(c,l):'/El

QI Household utility maximization 5 Points A representative household receives utility from consumption c and supplying labor l: As usual, I is the fraction of time that the household spends working. The household owns an exogenously determined amount of capital k. The household earns the nominal rental rate R on each unit of its capital holdings, earns the nominal wage W on each unit of labor it supplies, and pays the price P per unit of consumption. Its budget constraint is: Answer the following: