The REH can now be stated very succinctly as:

Pt = E [Pt I Qt_i] (3.5)

luces a higher price level wage, employment, and

-cant role. In a macroe-

Lich as fluctuation in the

, n reunification, OPEC i lot more difficult. Muth

( REH) to deal with situaoostulates of the REH are:

waste it, and (ii) the way

c. --d way on the structure I

example of an isolated

)n is not possible). This 63

+00 Figure 3.3. The normal distribution

-00 0 Pt =

a() -

al a