Question1- Consider an Overlapping Generation model with individuals living for two periods; young and old. Let Nt denote the population of the young at time t and assume the population is growing at a constant rate, N, = n N,.,. Suppose each individual receives an endowment of a perishable good y when young and nothing when old. Let the utility function of an individual be: 1 - a cita+ -Czif1 ;0 /. The newly printed money is then distributed equally among the current old as a lump-sum transfer a,. a. (2 point) Find the feasible set line. b. (3 point) Write the budget constraints and find the life-time budget constraint. c. (2point) Set up the maximization problem for an individual in the monetary equilibrium. d. (5 point) Now assume a=0.5 in the utility function. Derive the first order conditions (no need to find the optimal choices) e. (2 point) Do you expect the monetary equilibrium to be as efficient as Golden Rule allocation? Explain