Q1. Households Consider the constant relative risk aversion (CRRA) utility function presented in the lecture slides (also see Romer, 2019 chapter 7): () = 1 1 where >0. Consider the following questions: a) Calculate the coefficient of relative risk aversion for this utility function; this can be obtained using the formula: Coeff. of RRA = [() ()] where Ct is the level of real consumption, () is the first derivative of the instantaneous utility function with respect to consumption and () is the corresponding second derivative. b) How can we identify the intertemporal elasticity substitution of consumption between any two consecutive points in time, say period t and period t+1, for this utility function?