It would be really helpful, if you can solve at least 2 of these problems.

Problem Style Questions 1. Derive the Inter-temporal Labour Supply Condition from the optimality conditions of the household (Note: you do not have to solve the house- hold's problem). Explain intuitively what the inter-temporal condition represents. 2. (QUESTION TO BE SUBMITTED) Suppose the government suddenly announces that skilled immigration is to be increased next period. This amounts to an increase in [4.1.1. Use the BBC model to analyse what the impact of this policy would be in period t, i.e. how would the economy respond today? 3. (QUESTION TO BE SUBMITTED) Suppose the economy is hit with a ash ood in period 13. How can you think of this in terms of RBC shocks? Analyse the equilibrium response of the economy in an RBC model to the ood