Question 2 (20 points) Given the Cobb Douglas Production Function Y"= z'K'N'- and the law of motion of Capital K'=(1-d) K+1. Derive the current investment (I) of the firm in function of Y" K, a, r and d. Knowing that the optimal investment decision of the firm in equilibrium is MPK'=r+d.Question 3 [20 points] Suppose there is a permanent increase in total factor productivity {Increase in z and 2'}. Determine the implications cl this for current macroeconomic variables and show how the impact differs from the case in which total factor productivity is expected to increase only temporarily. Explain your results using diagrams