(25 marks) Consider an overlapping generations economy in which individuals live fortwo periods. Each individual has an endowmentywhen young andy0when old. In eachperiod there areNold individuals andN0= (1 +n)Nyoung individuals alive, wheren >0 is the population growth rate. The government establishes a social security systemthat is a hybrid between a pay-as-you-go (PAG) and a fully-funded (FF) system. Thesystem provides a pension (lump-sum)bto every old individual.The funding of theentire amoun