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Please answer letter a for Problem 2. I will leave a good review! Problem 2. Two-Period Consumption-Leisure Framework (35 points). The representative U.S. consumer optimizes

Please answer letter a for Problem 2. I will leave a good review!

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Problem 2. Two-Period Consumption-Leisure Framework (35 points). The representative U.S. consumer optimizes decisions for consumption in period 1 and period 2 (denoted, respectively, as c, and c, ) and labor supply in period 1 and period 2 (denoted, respectively, as n, and n, ). Denoting by Be (0,1) the one-period-ahead subjective discount factor, the consumer's two-period utility function is u(c, n, ) + B .u(c2,12). For reasons left out of the scope of the analysis of this problem, financial markets (whether domestic or international) do not exist, thus consumers in period I can neither save resources for period 2 nor borrow against their period 2 resources. The period-1 and period-2 budget constraints for the representative consumer are, respectively, 9 = (1 -7 ) . Wn and C2 = (1-72) . W2 'nz in which the real wages in both periods 1 and 2, w, and w, , are taken as given by the consumer as are the labor income tax rates, z, and r, , in, respectively, both periods 1 and 2. a. (5 points) Based on the fact that consumers can neither save nor borrow in period 1, can a lifetime Lagrange function that contains one single lifetime budget constraint be constructed? If it can, carefully construct it. If it cannot, carefully explain why it cannot be constructed

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