RDP 9411: Demand Shocks, Inflation and the Business Cycle Equation (7)

Δ Y t − Δ Y t e = ( δ − δ ∗ ) + γ 1 ∗ ( Δ D t − Δ D t e ) + γ 2 ∗ ( Δ C t − Δ C t e ) + ( γ 1 − γ 1 * ) Δ D t + ( γ 2 − γ 2 ∗ ) Δ C t + ( φ t − φ t ∗ ) MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqtubsr 4rNCHbGeaGqiVu0Je9sqqrpepC0xbbL8F4rqqrFfpeea0xe9Lq=Jc9 vqaqpepm0xbba9pwe9Q8fs0=yqaqpepae9pg0FirpepeKkFr0xfr=x fr=xb9adbaqaaeGaciGaaiaabeqaamaabaabaaGceaqabeaacqqHuo arcaWGzbWaaSbaaSqaaiaadshaaeqaaOGaeyOeI0IaeuiLdqKaamyw amaaDaaaleaacaWG0baabaGaamyzaaaakiabg2da9maabmaabaGaeq iTdqMaeyOeI0IaeqiTdq2aaWbaaSqabeaacqGHxiIkaaaakiaawIca caGLPaaacqGHRaWkcqaHZoWzdaWgaaWcbaGaaGymaaqabaGcdaahaa WcbeqaaiabgEHiQaaakmaabmaabaGaeuiLdqKaamiramaaBaaaleaa caWG0baabeaakiabgkHiTiabfs5aejaadseadaqhaaWcbaGaamiDaa qaaiaadwgaaaaakiaawIcacaGLPaaacqGHRaWkcqaHZoWzdaWgaaWc baGaaGOmaaqabaGcdaahaaWcbeqaaiabgEHiQaaakmaabmaabaGaeu iLdqKaam4qamaaBaaaleaacaWG0baabeaakiabgkHiTiabfs5aejaa doeadaqhaaWcbaGaamiDaaqaaiaadwgaaaaakiaawIcacaGLPaaaae aacqGHRaWkdaqadaqaaiabeo7aNnaaBaaaleaacaaIXaaabeaakiab gkHiTiabeo7aNnaaBaaaleaacaaIXaaabeaakmaaCaaaleqabaGaai OkaaaaaOGaayjkaiaawMcaaiabfs5aejaadseadaWgaaWcbaGaamiD aaqabaGccqGHRaWkdaqadaqaaiabeo7aNnaaBaaaleaacaaIYaaabe aakiabgkHiTiabeo7aNnaaBaaaleaacaaIYaaabeaakmaaCaaaleqa baGaey4fIOcaaaGccaGLOaGaayzkaaGaeuiLdqKaam4qamaaBaaale aacaWG0baabeaakiabgUcaRmaabmaabaGaeqOXdO2aaSbaaSqaaiaa dshaaeqaaOGaeyOeI0IaeqOXdO2aa0baaSqaamaaBaaameaacaWG0b aabeaaaSqaaiabgEHiQaaaaOGaayjkaiaawMcaaaaaaa@8850@