Consider a 2-period economy in which Yt = AtKt. The households start with a quantity a1 > 0 of initial assets and maximize lifetime utility given a per-period utility function u(c) = ln (c).

Solve for the equilibrium of this economy. Solving for the equilibrium means finding the value of all equilibrium objects as a function of the parameters of the model: A1, A2, , , , a1