THIS IS AN URGENT QUESTION PLEASE ANSWER 1, 2, 3, and 4. i also have another posting with the same question. I need the answers to 5,6,7 on that one answered as well. Thank you!!

Consider a two-period model. A consumer has income y in the current period and income y 0 in the future period. Suppose that there is no lump-sum taxes. Instead the government introduces proportional taxes on income in the current and future period. The tax rates on the current and future period income are t and t 0 , respectively. Assume that the rest of the model structure is the same as in the standard model. For example, the credit markets are perfect and the consumers take the equilibrium real interest rate as given.

1. In a diagram, identify the pre-tax and the post-tax endowment income points. Label clearly and explain how you draw the diagram.

2. Write down the period-by-period budget constraints for a consumer.

3. Derive the consumers lifetime budget constraint, and draw it on a diagram. (Draw a separate diagram from the above and label each component of the diagram very carefully.)

4. Suppose there are m consumers in the economy, indexed by i, and each has different income level in both periods, denoted by (yi , y0 i ). Write down the expression to calculate the total tax revenue in the current period and the future period.