Question: U(C,l)= 0.9In(C)+ 0.1 In(l) h=1 technology function Y=zN where N is the labour z=2 G=0.75 which has financed through a proportional tax What is the

U(C,l)= 0.9In(C)+ 0.1 In(l)

h=1 technology function Y=zN where N is the labour z=2

G=0.75 which has financed through a proportional tax

  1. What is the equilibrium?
  2. What is the Competitive equilibrium?
  3. Find Pareto optimal allocation by solving social planner's problem and what do you conclude?

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