Question: 3. What are the variables that are optimized or control variables? 4. Derive the first-order condition(s).1 Euler equation A representative household maximizes Et _ B'

4. Derive the first-order condition(s).1 Euler equation A representative household maximizes Et

3. What are the variables that are optimized or control variables? 4. Derive the first-order condition(s).1 Euler equation A representative household maximizes Et _ B' [log (Ct+j - 0Ct+j-1) - xhetil, (1) j=0 where Ottj + Kt+j = wt+jht+j + rt+jKt+j-1 + lIt+j -T. (2)

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