Consider the following infinite horizon model with a single type of consumer and two production sectors: an intermediate good sector that uses labor as its only input and a final good sector that uses capital, labor and the intermediate good. Preferences are given by The final good can be used for consumption or investment purchases. The technology for producing the final good is given by h1 Where kFt is capital, zFt is the intermediate good, and hFt is labor. The intermediate good is produced according to a different technology that uses only labor, Capital is not -technology- specific. The stock of capital evolves according to =0 11 1 =h 1 =(1) The economy is endowed with ko > 0 units of capital at date 0. The household is endowed with one unit of time in each period