Question: Please answer with all the math details 1. Consider the following economy. There is an aggregate Cobb Douglas production function that produces output y ye

Please answer with all the math details

Please answer with all the math details 1. Consider the following economy.

1. Consider the following economy. There is an aggregate Cobb Douglas production function that produces output y ye = zkim where ke is the capital and ne is labor input to production. The output can be consumed " or can be used as investment It. Each unit of investment adds - unit of new capital where q > 1. In other words investment of It, adds It/q to the stock of capital. Existing capital depreciates at rate o. Representative household has 1 unit of time every period t which can be used to work or enjoy leisure. They also have the following preferences Blog at ,0

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