2. Wealth effect on labor supply. Consider an agent that lives for two periods. In the first period, the agent is young and can work to produce a consumption good using technology y = 71-a - 1 - 0 where y is the amount of the good produced and I is the labor effort supplied by the agent. In addition, at the beginning of the period the agent is endowed with some quantity W of the consumption good. In the second period the agent is old and cannot work anymore. The agent has access to a savings technology that allows her to store some of the consumption good that was produced in period 1 and get it back in period 2 with some return r. The agent has preferences represented by: ci 11+v U (C1, C2,1) cz +B 1-0 1+v where and C2 are consumption in period 1 and 2, respectively, 0