where we have used the definition of 7 (in (8.2)) and the fact that V - V

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where we have used the definition of 7 (in (8.2)) and the fact that V - V =

(L/N)(u(w) - u(B)) in the final step. Continuing the derivation, we obtain:

u(w) - u(B) 1 (1 - ?)wl,

, =

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Foundations Of Modern Macroeconomics

ISBN: 9781264857937

1st Edition

Authors: Ben J. Heijdra, Frederick Van Der Ploeg

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Question Posted: Nov 12, 2024 07:00 AM

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where we have used the definition of 7 (in (8.2)) and the fact that V - V = (L/N)(u(w) - u(B)) in the final step. Continuing the derivation, we obtain: u(w) - u(B) 1 (1 - ?)wl, , = > 0,
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where we have used the definition of 7 (in (8.2)) and the fact that V - V

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Step by Step Answer:

Foundations Of Modern Macroeconomics

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