Economics 104B, Section 1
By Frank Lopez,2014-02-11 02:03
Economics 104B, Section 1 Prof. Steve Fazzari
Solutions to Problem Set #4 Spring, 2011
1. According to demand-side theory, firms produce what they can (or what they expect) to sell.
If aggregate demand declines, firms will sell less. As a result, they produce less and employ less
The three main channels we discussed through which higher interest rates c..