(23 points) Impact of government spending: Tax on labor with government spending Consider an economy where the representative consumer has a utility function given by (H L)1+7 u(C, L) = log (C- 1+ over consumption C and leisure L. The consumer has an endowment of H units of time, provides labor, Ns, to firms at wage rate w, receives profits, II, from firms and pays a tax 1 on labor income. The total amount of taxes paid are given by twNs. The government uses the revenue from the labor income taxes to finance government purchases of goods G. The representative firm has a production technology given by Y = AF(K, N) = AK^Nl-a, 0