Question

The following are to be answered:
1.How did the decline in home prices in 2006-2008 affect aggregate demand?

2.What's wrong with classical theory? Why didn't sales and employment increase in 1929- 1933, in respect to decline prices and wages?

Due date: 11-14-15

Answer 1

Wow -- you're expecting someone to do your entire assignment for you?

That won't happen, but if you post what YOU THINK, then a math/econ tutor might be able to help you.

Answer 2

it will cause aggregate demand to rise