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(a) Calculate the Ramsey equilibrium, i.e., calculate the taxes on capital and labor, consumption at each stage and the labor choice in the second stage
(a) Calculate the Ramsey equilibrium, i.e., calculate the taxes on capital and labor, consumption at each stage and the labor choice in the second stage under the Ramsey policy. (b) Calculate the sustainable equilibrium, i.e., calculate the taxes on capital and labor, consumption at each stage and the labor choice in the second stage under the sustainable policy. (c) Provide intuition for why the two solutions, Ramsey and sustainable, differ. (d) Calculate the utility of the representative consumer under the Ramsey and sus- tainable policies and argue which policy is better
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