Question: P(x) = MF(x) + p e(x) / / / price of x market expected price of x fundamentals in previous period Writing in terms of

P(x) = MF(x) + p e(x) / / / price of x market expected price of x fundamentals in previous period Writing in terms of the aggregate price level P = MF + Pe Subtracting the previous price level (P- P-1) = MF + (pe - P-1) Writing in terms of inflation Inf = MF + Infe

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