Fixed Money Wages

So far we assumed either slow or flexible money wages. Now we shall suppose that money wages are fixed. Relying on this premise, the short-run equilibrium can be described by a system of twelve equations: 1$$\text{Y=C+I+G} $$2$$Y={{K}^{\alpha }}{{N}^{\beta }} $$3$$\text{K*= }\!\!\alpha\!\!\text{ Y/r}$$4$$I=\lambda \left( K*-K \right)$$5$$\dot{K}=I $$6$$T=t\left( Y+rD \right) $$7$$B=G+rD-T $$8$$\dot{D}=B $$9$$Y+rD=C+S+T $$10$$S=\beta \delta \mu \left( 1-t \right)Y-\mu \left( D+K \right) $$11$$w/p=\beta Y/N $$12$$M/p=Y/{{r}^{\eta }}$$ Here α, β, δ, η, λ, μ, t, w, D, G, K, M and $$\bar{N}$$ are given exogenously, while p, r, B, C, $$\dot{D}$$, I, K*, $$\dot{K}$$, N, S, T and Y are endogenous variables.