RBC Model Without Capital: Suppose the production function is given as =1- where is the level of technology and is labor. Households maximize utility of the following form: =0(()-1+1+) subject to the budget constraint +=+(1+)-1+(1-) where are profits and 0

4. RBC Model Without Capital: Suppose the production function is given as where A is the level of technology and N, is labor. Households maximize utility of the following form: log (C!) - RV, 8=0 subject to the budget constraint C+ S = WN+ (1+ n)5 1+ 1(1 -4) where II, are profits and 0