###### Real GDP (billions of 2002 dollars) W Labour (billions of hours per year) Figure 22.3.1 7) Refer to Figure 22.3.1. In the above figure the country of…
September 3, 2020
###### Fill in the following table.If the factors in the first column change as indicated, in which direction will the variables in the remaining columns…
September 3, 2020

can you please solve this. it is for intermediate macroeconomics

I tried solving it but couldn’t t solve it .

4. More on the Intertemporal Elasticity of Substitution. Suppose that the individual’a lifetime utilityis given by:u = u(c) + 515(6)where again the utility from consumption in a. given period is given by 4214-1a“): 1-0- The intertemporal budget oonstraint is given by f I C _ y1+r_y+1+r’ (a) What is implicitly being assumed, in the intertemporal budget constraint, about opportunities to borrowand save? (b) Derive the consumption Euler Equation. (G) Take natural logs of both sides of the Euler equation. Use (i) the approximation ln(1 + :r} H 2:, and (ii)the fact that ﬂ = 1/(1+p), to derive the relationship between the growth rate of consumption (lnc’ wine)and the parameters 7′, p and o. (:1) Explain, based on your derivation, the role that 0′ plays in determining the consumption growth rateand provide the intuition. C+