2. Intertemporal Labor Supply: Consider the basic neoclassical model as presented in class, but with a different twist. The equations summarizing the equilibrium of the model are given below: Ct : Cd(Yt,Yt+1,'Pt) N: = N3(wt,6t,rt) Ni = Nwath) It = Id(rt:At+11Kt) Yt : AtF(Kt,Nt) Y: = C: + It The twist in this problem relative to the model in class is that labor supply is now a function of the real interest rate. We assume that the partial derivative of labor supply with respect to the real interest rate is positive i.e. W > 0