Question 2 The social planning approach provides a shortcut to analyze the competitive equilibrium of the two-period pure endowment model. In this exercise you will apply graphical comparative statics analysis like those in Williamson Chapter 5 for the one- period model. The fictitious social planner's problem for the two-period endowment model is Max U(C, C') = u(C) + Bu(C) C.C subject to C + GSY, C ' + G'S Y ' The period utility function u(.) satisfies standard properties: u'(.) > 0,u"(.) too. The log utility is one example. In this exercise you will work with a general utility function. The production possibility set (PPS) is the set of all technologically feasible allocations: PPS = { ( C , C ) : C + G