Question 7: (8 marks) Consider an economy with 2-period-lived people in overlapping generations (similar to the one in class). Each person produces from labour y goods when young and nothing when old. Suppose the number of young born in period t is determined by Ni = 1.5Nt_1. There is the following capital technology: if kt goods per young person are turned into capital at r, the capital produces cht) goods at rH. The diminishing marginal product of capital is f'Uct). After production takes place, 6 = 0.3 is lost to depreciation. and the remaining units of capital can be consumed. a) (4 marks) Write the equation that represents the set of feasible stationary allocations and explain it. b) (4 marks) Find the equation that describes the golden rule of capital stock for this economy