Consider a social planner. All consumers are identical. There is one good available. Each is endowed with y units of the good in the first period and none in the second. Preferences are given by U(c1, c2) = Ln(c1) + Ln(c2). The resource constraint is y = c1 + c2/(1+n), where the population grows at rate 1+n.
1. Graph the resource constraint. (1 point)
2. Find the socially optimal consumption allocation. (1 point.)
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