38Note if profits were not held by firms then the goods market condition would be Ct + Gt = Y t − κvt −φ 2 ( Pt Pt−1 − 1)2Y t. In particular, since firm profits are Dt = Y t − wtNt − κvt −φ 2 ( Pt Pt−1 − 1)2Y t, then the goods market condition would become Ct + Gt = wtNt + Dt = Y t − κvt −φ 2 ( Pt Pt−1 − 1)2Y t.