Suppose that you are the chairperson of the fed. imagine that your goal is to stabilize output (ie to keep short run output as close to zero as possible). explain what policy decisions you would implement (and what curves would shift) in order to achieve the aforementioned goal under the following assumption: a booming economy in europe leads to an unexpected increase in the demand by european consumers for u. s.goods. a. the is curve shifts to the right due to the increase in exports to europe. you would have to lower interest rates to bring back the economy to potential output. b. the is curve shifts to the right due to the increase in exports to europe. you would have to lower interest rates to bring back the economy to potential output. c. the is curve shifts to the right due to the increase in exports to europe. you would have to raise interest rates to bring back the economy to potential output. d. the is curve shifts to the left due to the increase in exports to europe. you would have to raise interest rates to bring back the economy to potential output

Which of the following best explains cost-push inflation? a. increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs. b. consumers demand goods faster than they can be supplied, increasing competition among buyers. c. rising prices for goods and services reduce spending power and cut into consumer demand. d. wages drop so that workers have to spend a higher percentage of income on the cost of necessities.2b2t

Panera bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. the company began in 1981 with stores primarily located along the east coast of the united states. since then, the firm has expanded to over 1,300 locations throughout the united states and canada. the firm has strong earnings and has been designated by business week as a "significant growth company." panera bread executives are considering the idea of expanding globally by opening cafes in asia through a franchising strategy. which of the following, if true, supports the argument that panera bread should expand into asia through franchising? a: the panera bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. b: panera bread executives want fast access to the asian market without a significant investment of capital. c: panera bread executives want to test the asian market with a short-term commitment that allows them to make quick profits. d: the panera bread mission is to make excellent bread available to customers around the world.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?