1. Abstracting from long-run growth by setting n = 9 = 0 nd from persistent shocks by setting PA = PG = 0, with At = InAt - InA and Gr = InGt - InG, and normalizing the population to N = 1, the following nine equations describe the "baseline" RBC model in Chapter 5: Y = atthe + Gt Yo = Ki , ( ALL t ) 1 - Ke = Keith-6Kt-1 At = EA,t Gt = EG,t It = (AtL / Ke_1)1-a - 5 Wt = (1 -Q)(Kt-1/AtIt)"At 1 = BEt CH+1 (1 + rt+1 ) Ct Wt 1 - Lt b (9) where e ? = B. (a) Find the steady state for this economy under the following calibration: a = 1/3, 6 = 0.05, T = 0.025, A = 1, and L = 0.5 and G such that G/Y = 0.2. In particular, find the remaining parameter values b and p that are consistent with steady state and determine steady-state values for the endogenous variables, Y, C, I, G, K, and w. (b) Log-linearize the seven equations above excluding equations (4) and (5) for At and Gt. (c) Write a Dynare .mod file to simulate this economy. Assume that At = PAAt-1 + EA,t and Gt = PcGt-1 + EG,t are the log-linearized shocks. Set a = 1/3, 6 = 0.05, PA = PG = .8, e P = 0.99, OFA = OFG = 1, and b = 1. Provide a graph of the impulse response of one standard deviation shock to technology and government spending. (Hint: This model is nearly identical to the one we went over in class. Rather than start from scratch try modifying the Dynare .mod I have provided on Canvas.) (d) What