Question: please help! Consider the basic dynamic general equilibrium model discussed in class and answer the following questions: a. What is the objective of the Basic

please help!

please help! Consider the basic dynamic general equilibrium model discussed in class

Consider the basic dynamic general equilibrium model discussed in class and answer the following questions: a. What is the objective of the Basic DGE model? What are some of the main simplications? b. Let the production function be given by t iii where G c u 4: 1. Using the same notation as in class for the remaining variables, derive the resource constraint for this economy. c. Dene and compute the Golden Rule level of consumption and capital. Show the results in a graph. Why is the Golden Rule dynamically unstable? kt) = .. SEE-where D c u U032) = [MEQ Continue assuming that the production function is given { 1. Also. assume that the period utility function is given by

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