1. Introduction to the dynamic macroeconomic model: Consider a two~period macroe conomic model with a representative consumer and a representative rm. The rep resentative consumer makes consumptionsaving and labour supply decisions. The representative rm makes labour demand and investment decisions. (a) Dene the competitive equilibrium of this economy by stating the optimality conditions from the consumer's and the rm's optimisation problems, and the market clearing conditions. (b) Use these conditions to explain why i. The labour demand curve N d slopes down. ii. The labour supply curve N 3 slopes up. iii. The output demand curve Yd slopes down. iv. The output supply curve Y3 slopes up