RDP 8611: The Effectiveness of Fiscal Policy in an Economy with Anticipatory Wage Contracts Equation (34)

( π ^ 1 π ^ 0 )= αδ D 0 e m ^ 1 ( 1 ξ 1 ) ( b ^ 1 b ^ o )= e b ^ 1 (1α)δ D o n+(1α)(θρ) MathType@MTEF@5@5@+=feaagCart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLnhiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=xfr=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@6CA7@