<Dd> (1 + i t) − 1 = 1 − i t + i t 2 − i t 3 +...(\ displaystyle (1 + i_ (t)) ^ (- 1) = 1 - i_ (t) + i_ (t) ^ (2) - i_ (t) ^ (3) + ...) </Dd> <Dl> <Dd> 1 + r t = (1 + g t) (1 − i t + i t 2 − i t 3 + ...) (\ displaystyle 1 + r_ (t) = (1 + g_ (t)) (1 - i_ (t) + i_ (t) ^ (2) - i_ (t) ^ (3) + ...)) </Dd> </Dl> <Dd> 1 + r t = (1 + g t) (1 − i t + i t 2 − i t 3 + ...) (\ displaystyle 1 + r_ (t) = (1 + g_ (t)) (1 - i_ (t) + i_ (t) ^ (2) - i_ (t) ^ (3) + ...)) </Dd> <Dl> <Dd> <Dl> <Dd> <Dl> <Dd> = 1 + g t − i t − g t i t + i t 2 + higher order terms . (\ displaystyle = 1 + g_ (t) - i_ (t) - g_ (t) i_ (t) + i_ (t) ^ (2) + (\ text (higher order terms .))) </Dd> </Dl> </Dd> </Dl> </Dd> </Dl>

Discuss how the nominal and real values of things affect the aggregate behavior of a society