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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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    https://brainmass.com/economics/supply-and-demand/model-nominal-rigidities-6538

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    Hope this helps...

    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 ...

    Solution Summary

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

    $2.19

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