37Note if profits were not held by firms then the goods market condition would be Ct+Gt = Y t−κvt−φ- 2( -Pt- ) Pt−1 − 12Y t. In particular, since firm profits are Dt = Y t−wtNt−κvt− φ- 2 (-Pt- ) Pt−1 − 12Y t, then the goods market condition would become Ct + Gt = wtNt + Dt = Y t − κvt − φ- 2 ( ) -Pt-− 1 Pt−12Y t.