1 Thinking about budget constraints (4 pts) If I write the budget constraint as: PC+AB+P-AK=H+wL+iBB+iKPK Letting C be consumption, L be labor, to be the wage rate, 3'3.- be the interest rate of asset 3', B be bonds, and K be capital, with P being the price level. a) Break up this equation into four pieces: consumption expenditures, savings expenditures, nonlabor income, and labor income. [Label each onle). Is the budget constraint in nominal or real terms? b) Let leisure f = 1 L, which assumes total amount of available time is one. Assuming savings is zero, carefully plot the household's budget constraint in a single period, graphing consump tion on the yaxis and leisure on the xaxis. Clearly denote/label the slope, the intercepts, and choose some endowment in the middle. You ma)r assume their initial \"property income\" (nonlabor earnings) are positive. 0) Government conscate-1 aJ] nonlabor earnings and uses it to fund a giant tax credit, increasing everyone's wages. Depict this shift on your graph. Be clear! (1) If a household is holding both bonds and capital in our model, what must be true of 3'3 and ix? Why