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# model with nominal rigidities

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The model with nominal rigidities is:
yd = m - p + v,
ys = b(p - E[p]) +b(u - a E[u]),
w = E[p] + a E[u], a = aà?/d+à?. And

The model without nominal rigidities is:
yd = m - p + v,
ys = b(1-a)u,
w = p + au, a = aà?/d+à?.

Find P* and Y* for model with nominal rigidities?

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The expert finds a P* and Y* for model with nominal rigidities.

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The model with nominal rigidities is:
yd = m - p + v,
ys = b(p - E[p]) +b(u - a E[u]),
w = E[p] + a E[u], a = aÃ/d+Ã. And

The model without nominal rigidities is:
yd = m - p + v,
ys = b(1-a)u,
w = p + au, a = aÃ/d+Ã.

Find P* and Y* for model with nominal rigidities?

Y* (or the equilibrium value for Y ...

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