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pls help me with a and b (9) (10) to = 0(+ + rx_1bh,-1) (11) (12) a =m . yo + 0 -1-1 (13) hit

pls help me with a and b

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(9) (10) to = 0(+ + rx_1bh,-1) (11) (12) a =m . yo + 0 -1-1 (13) hit = 2 - oh,t (14) but = Nothirty - 20 Lif (15) of= ul+ yd -a (16) but = bas (17) but = bas_1+ (gi + _1be,_1) - (tt + m_1beb,1-1) (18) ha,t = hs,t-1 + beb,t - beb,1-1 (19) baby = bas - bat (20) 14 = yd-1 (21) In this model, the redundant equation is again he = ha. We assume that the central bank sets the interest rate n = 0.03 and that the government spends of = 50 every period. Further assume that 0 = 0.2, (1 = 0.6, 02 = 0.4, Ao = 0.635, M =5 et 12 = 0.01.2a) At the steady state, what is the level of GDP y, and consumption c? What is the debt-to-GDP ratio? 2 2b) At the steady state, what is the total amount of interest paid by the government? What is the amount of interest paid by the government to households? 2c) Define the effective interest rate of the government as the ratio of interest paid to households to the TOTAL amount of government debt. Calculate the effective interest rate of the government. Is it higher or lower than the official interest rate set by the central bank? 2d) Find the steady state level of GDP, consumption and the debt-to-GDP ratio assuming now that on = 0.8 and 02 = 0.2. Is it different that what you found in 2a)

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