1. Consider the overlapping generations model as discussed in the lecture. Assume survival probability of the representative individual as @521. Assume that the economy has access to a traditional as well as a modern technology. The traditional technology takes the form if! =AK\"LH'and the modern technology takes the form Y3=BK\"L\"suoh that B>A. _l_r_1___g_r_d_e_r___t_g exploit the superior technology, the country would need to pay a set up cost proportional to the labour force and given by 5L, where b > 0. Derive the steady state capital stock for both traditional and modern technologies and demonstrate poverty trap. Speculate what other policies could modernise the traditional economy