ABSTRACT
In this chapter we summarize our discussion of the behavior of firms and households in the simple Walrasian model with money and production. In doing so, we consider first the nature of constraints faced by the participants in the economy with respect to decisions during period t, and then their behavior in terms of demand and/or supply. Along the way, we will try to simplify the notation and introduce various expectations and assumptions of different macroeconomic models. We start our discussion with firms.
