Question
Consider a dynamic (two-period) macroeconomic model with a representative household, a representative firm, and a government. The representative household makes consumption- saving and labor
Consider a dynamic (two-period) macroeconomic model with a representative household, a representative firm, and a government. The representative household makes consumption- saving and labor supply decisions. The representative firm makes labor demand and invest- ment decisions. (a) Clearly write down the representative consumer's problem and the necessary assump- tions. (b) Clearly write down the representative firm's problem and the necessary assumptions. (c) Clearly definite the competitive equilibrium for this economy. (d) Derive (graphically) the output demand curve. State the necessary assumption(s).
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
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