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2. iv Can government expenditure G exceed T in this model? Explain. 3. iv Suppose that a representative firm's production function is given by xF(K,
2. iv Can government expenditure G exceed T in this model? Explain. 3. iv Suppose that a representative firm's production function is given by xF(K, NdJ=s KNd, with total factor productivity s = 2 and capital K = 115. N d denotes labor demand. Write the prot maximization problem. 4. iv Write the production possibility fron- tier as a function of l, i.e., vvrite C = some function of I. 5. iv If the consumer does not work, there is no output produced. Does this mean that [C , I) = [0, h] is feasible in this economy? Explain. 6. iv Write a social planner's
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