Part A: Consumption Suppose that a household lives for two periods and has a utility function and intertemporal budget constraint as follows: (C1.5 + Bc2.5) 1- Y U(C1, C2) = 1-y ITBC: C1 + C2 = y1+ 1+r 1+r a) Derive step by step the Euler equation faced by this consumer (define the Lagrangian and then obtain first order conditions as we did it in the lecture). Explain the intuition of the Euler equation.Part B: Fiscal Policy Consider an economy existing for four periods following the government budget constraint as follows: Bt+1 = (1 + DBL\" + Gt T: a) Dene each of the variables above and explain, in words, why the equality holds. Re-write this budget constraint during each of the four periods that the economy exists