Question: Given prices (p), wages (w) the consumer chooses consumption (c), and labor hours (h) to solve max log(c) + log(24 - hc) c,hc pc

Given prices (p), wages (w) the consumer chooses consumption (c), and labor

Given prices (p), wages (w) the consumer chooses consumption (c), and labor hours (h) to solve max log(c) + log(24 - hc) c,hc pc wh + Given p, w, productivity (A), and technology returns (a) the firm chooses quantity (q) and labor (h) to solve = max pq q,hf - whf 9Ahfa Global Market Clearing is satisfied c = q h = hf 1. (0.5) Using FSOLVE, solve your model for the case of = 1 and A-2. What is GDP? Hint: you can put in the FOCs. You don't care about the Lagrangian multiplier, but it doesn't you a lot of time to have MATLAB calculate it. 2. (0.5) Suppose there are two identical consumers, and = 1 and A=2. What is GDP? 3. (0.5) Suppose there are three identical consumers and = 1 and A=2. What is GDP? 4. (0.5) Suppose there are four identical consumers and = 1 and A=2. What is GDP?

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