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Consider a model with overlapping generations of consumers, where each generation lives for 2 periods. There are N = 17 young consumers and N' = 26 old consumers. When young, a consumer receives income y = 3.2, which is taxed at the rate 1 = 23 percent. When old, a consumer receives income y = 2.0 and receives pension benefits b>0. Note that this corresponds to a situation when old workers work past the typical retirement age, but the government requires that they start receiving distributions out of their pension. The interest rate in this economy is r = 7 percent. The Social Security Administration balances its budget every year Compute the statistics required below, rounding to 2 decimal places a). The pension benefit for a consumer when old is b). The lifetime wealth (including benefits) of a consumer is Consider a model with overlapping generations of consumers, where each generation lives for 2 periods. There are N = 17 young consumers and N' = 26 old consumers. When young, a consumer receives income y = 3.2, which is taxed at the rate 1 = 23 percent. When old, a consumer receives income y = 2.0 and receives pension benefits b>0. Note that this corresponds to a situation when old workers work past the typical retirement age, but the government requires that they start receiving distributions out of their pension. The interest rate in this economy is r = 7 percent. The Social Security Administration balances its budget every year Compute the statistics required below, rounding to 2 decimal places a). The pension benefit for a consumer when old is b). The lifetime wealth (including benefits) of a consumer is

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