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Solve clearly Suppose that in period t the economy consists of one f'rm, N young people, and N old people, with N = 20. The

Solve clearly

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Suppose that in period t the economy consists of one f'rm, N young people, and N old people, with N = 20. The households utility function is as usual. with a value 01.3!) for the parameter a. The finn's production technology is modeied by a Cobb-Douglas production function with B = .40 and A1 = 4. The wage received by each young household in exchange for its one unit of labor supplied in period H {the previous period} was 5. 1. How much a. labor (total) is supplied by the N young people in period t? b. capital {total} is supplied by the N old people in period t

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