Please Answer the following question:

SHOW ALL OF YOUR. WORK. Consider an overlapping generations economy in which, every period, a constant mass (normalised to 1) of two-period lived individuals is born. These individuals have preferences over leisure, f, , when young and consumption 15' when old, a #13 according to the lifetime utility function U, = dirlojlnfm , where HE (0,1). When young, individuals have a unit of time which they can devote to either leisure or to activities that promote the formation of human capital. These activities are denoted by awhile human capital evolves according to it: =3:th (3:0, 0:51). 1When old, individuals supply their human capital to perfectlyr competitive rms that employ a technology that is linear in effective labour, in order to produce nal goods according to J)\