²⁷Note if profits were not held by firms then the goods market condition would be C_t+G_t = Y _t−κv_t−²Y _t. In particular, since firm profits are D_t = Y _t−w_tN_t−κv_t−²Y _t, then the goods market condition would become C_t + G_t = w_tN_t + D_t = Y _t − κv_t −²Y _t.