RDP 8611: The Effectiveness of Fiscal Policy in an Economy with Anticipatory Wage Contracts Equation (24)

\begin{array}{l} \frac{d \hat{m}}{{dD}_{ο}} = \frac{- ξ}{D_{ο} (1 - ξ)} < 0 \\ \frac{d \hat{π}}{{dD}_{ο}} = \frac{1}{e^{\hat{m}} (1 - ξ)} > 0 \end{array}