Part B only, please

Suppose there is an economy with one household who cares only about consumption of a final good (coconuts) and leisure. The household has h=50. The household's preferences over consumption of coconuts and leisure is given by the following utility function: U(C,l)=C+200ln(l) There is a single firm which makes coconuts. The firm uses household labour and a fixed amount of capital (coconut trees) equal to K=64 to produce coconuts. The production function for producing coconuts is given by: Y=z(ND)0.5(K)0.5 Here z bounces around between zL=40.0 and zH=70.0. You will need the quadratic formula for this question. A) (25 points) Complete the first two columns of the table below for the two values that z can take. Use your answers to determine the qualitative predictions of this economy regarding the cyclical properties (procyclical, countercyclical, or acyclical) of consumption, real wages, labour hours, and labour productivity when there are technology shocks. Provide economic intuition to explain each of these cyclical properties. B) (15 points) Suppose that for several periods, the economy was experiencing z=70 and then z falls to z=40 and remains at that levl for several periods. During the periods when z=40, the government follows a stabilisation policy in which it forces the household to work for the same number of hours as it did when z=70. Complete Column 3 of the table above for a period in which z=40 and the government follows its stabilisation policy. Compare the values in Column 1 with the values in Column 3 and provide economic intuition for the direction of the differences for each variable. Suppose there is an economy with one household who cares only about consumption of a final good (coconuts) and leisure. The household has h=50. The household's preferences over consumption of coconuts and leisure is given by the following utility function: U(C,l)=C+200ln(l) There is a single firm which makes coconuts. The firm uses household labour and a fixed amount of capital (coconut trees) equal to K=64 to produce coconuts. The production function for producing coconuts is given by: Y=z(ND)0.5(K)0.5 Here z bounces around between zL=40.0 and zH=70.0. You will need the quadratic formula for this question. A) (25 points) Complete the first two columns of the table below for the two values that z can take. Use your answers to determine the qualitative predictions of this economy regarding the cyclical properties (procyclical, countercyclical, or acyclical) of consumption, real wages, labour hours, and labour productivity when there are technology shocks. Provide economic intuition to explain each of these cyclical properties. B) (15 points) Suppose that for several periods, the economy was experiencing z=70 and then z falls to z=40 and remains at that levl for several periods. During the periods when z=40, the government follows a stabilisation policy in which it forces the household to work for the same number of hours as it did when z=70. Complete Column 3 of the table above for a period in which z=40 and the government follows its stabilisation policy. Compare the values in Column 1 with the values in Column 3 and provide economic intuition for the direction of the differences for each variable