Abstract
We analyze an intertemporal disequilibrium macroeconomic model under perfect foresight and with a fixed real wage. The focus is on investment behavior derived from an intertemporal optimization. The introduction of overtime work ensures the absence of discontinuities between regimes. This enables us to clarify the respective roles of the real wage level, of autonomous demand and of expectations in the determination of the level of output both in the short and in the long run.
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