Using the CRTS Cobb-Douglas production function Y = zK*N1-a with a = 1/3 technology z = 1. K = 2000 machines available for workers to use this year h = 4000 employee-years of labour time are in principle available. However, employees can choose not to work their full number of employee-years; they may prefer to take some as leisure I. Hence the number of employee-years actually spent working is N = h - I Each worker-year earns a wage w The number of worker-years N, combined with the K = 2000 machines, produces, according to the production function, output Y which consists of widgets. Suppose that employees use their preferences to decide how much leisure I and consumption C to enjoy. The equating of the marginal rates of substitution and transformation determines an equilibrium real wage w. Suppose preferences are such that this wage is w = 2/3, so for each worker-year employees are paid 2/3 of a widget. Suppose as well that there is no government expenditure or taxes, so G = T = 0 Obtain numerical answers to the following questions. (b) What is the total factor payment to labour, wN (in widgets)? (c) What is the capital labour ratio, k = K/N (in machines per worker)? (d) What is output per worker, y = Y /N (in widgets per worker)? (e) What is total output, Y (in widgets)? (f) What is consumption, C (in widgets)