# ( 20 points ) Let representative agent maximize want . c ( 1 ) and ( 2 ) her utility ( c ( 1 ) , c ( 2 ) ) = In ( c ( 2 ) ) + subject to It p In ( (…

Please help me solve this question. It’s a practice for the upcoming exam and I need to understand how to solve it. I’m not good at equations at all.Thank you!

6 . ( 20 points ) Let representative agent maximize want . c ( 1 ) and ( 2 ) her utility( c ( 1 ) , c ( 2 ) ) = In ( c ( 2 ) ) +subject toIt pIn ( ( 2 ) )( ( 1 ) . . ( 2 )max , c ( 1 ) 2 0 , c ( 2 ) 20a ( 1 ) = 3 ( 1 ) – 0 ( 1 ) – T ( 1 )&quot; ( 2 ) = ( 1 + + ) a ( 1 ) + 3 ( 2 ) – 0 ( 2 ) – 7 ( 2 ) 20where y ( 1 ) &gt; O and y ( 2 ) &gt; O are incomes r is the real interest rate , and T ( 1 ) &lt; 3 ( 1 ) and I ( 2 ) &lt; 3 ( 2 ) areump – sum taxes . Government bonds 6 per capita6 ( 1 ) = 6 ( 0 ) + + ( 1 ) – G ( 1 )6 ( 2 ) = ( 1 + + ) 6 ( 1 ) + + ( 2 ) – G ( 2 ) ,where G ( 1 ) and G ( 2 ) are government spendings . Ricardian equivalence implyes that with fixed y ( 1 ) , 3 ( 2 )G ( 1 ) , G ( 2 ) , 6 ( 0 ) , 6 ( 2 ) , the consumption does not depend on tax time-distribution but only on its presenItsvalue ( 1 ) + 12 List the assumptions of the model that you think can be violated in reality