= Consider an Overlapping generations economy in which Nt young individuals are born each period. Individuals are endowed with y 15 units of the consumption good when young and nothing when old. The utility function of one typical agent is a typical time-separable CRRA: u(c, c) = + . (0, 1] is the time discount factor and > 0 is the 1-o - 1-o inverse of the elasticity of intertemporal substitution. Population of the future generations are determined by Nt+1 = n.Nt for all t > 1. 1. What is the equation for the feasible set of this economy? 2. Portray the feasible set on a graph. 3. Let's solve the Planner's Problem. (i) State the Planner's problem as a constrained maximization problem. (ii) Write down the Lagrangean for this problem. (iii) What are the FOCs? (iv) Assuming a stationary equilibrium, find the optimal allocations as a function of 3 and o only. 4. How does consumption when young respond to changes in 3? What about o? And n? 5. Now, B = 0.5 and 2. Substitute and find c and C2.