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Consider an aggregate economy with the following intertemporal resource constraint: yt = ct + it Where:...

Consider an aggregate economy with the following intertemporal resource constraint: yt = ct + it

Where: it = kt+1 − (1 − δ)kt

Savings are equal to investment: St = syt = it

And the economy has access to the following production technology: yt = k^(1/3)

(Part A) Express the resource constraint in terms of only capital by eliminating it , yt , and ct .

(Part B) Express the investment equation in terms of only capital by eliminating it . Hint: recall the savings equation, and how that relates to output.

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