Problem 3: Macro Fiscal Policy with a Permanent Borrowing Scheme, Revisited Consider the following two-period, Overlapping Generations model of an economy. POPULATION Population of young in any time period t: n Population of old in any time period t: n Total population of country in any time period t : N = n + n = 2n GOVERNMENT'S PROBLEM Provide G, in every t such that the following is satisfied: G - T + G+1 - Tr+1 G+2 T+2 R+1 R+1R+2 subject to Syt +Sp+1 + b+1 = (1-)w byt byt = 1, + 'yt byt CONSUMER'S PROBLEM max_ U = c+ly, a+y+0=1, 0 FIRM'S PROBLEM max_ V = + H,K+ H+1 such that t = AHK - w,H, 0