Consider a one period economy in which the representative consumer has preferences over leisure (I) and consumption (c) described by the utility function n(c, I) = c051\"5 This consumer has 1 unit of time h to spend between leisure, I, and labor supply, N\". The representative rm's production funstion is Y = 2Nd where N d is labor demand and z = 2 is totai factor productivity. The government buys one unit of consumption good, meaning that, G = 1. [a] Explain what an indierence curve is. Does the consumer prefer allocation c = 4 and i = 0.25 to the allocation c = 5 and i = 0.2? Explain. [b] Find the Production pomibility frontier {PPF} equation. [c] From the rm's maximization problem, nd the consumer's real wage and rm's prots. (d) Explain Why it is possible to determine the competitive equilibrium of the present economy by obtaining the social planner's solution? (e) \"That are the conditions characterizing the social planner's solution? (E) Show that the competitive equilibrium of this economy is c\" = 0.5 and I' = 0.25