Assume that in a certain economy, the LM curve is given by Y = 2,000r – 2,000 + 2(M/P) + u, where u is a shock that is equal to +200 half the time and –200 half the time, and the IS curve is given by Y = 8,000 – 2,000r. The price level (P) is fixed at 1.0. The natural rate of output is 4,000. The government wants to keep output as close as possible to 4,000 and does not care about anything else. Consider the following two policy rules: i. Set the money supply M equal to 1,000 and keep it there. ii. Manipulate M from day to day to keep the interest rate constant at 2 percent. a. Under rule i, what will Y be when u = +200? Under rule i, what will Y be when u = –200? b. Under rule ii, what will Y be when u = +200? Under rule ii, what will Y be when u = –200? c. Which rule will keep output closer to 4,000?

The dollar value generated over decades of customer loyalty to your company is known as brand equity. viability. sustainability. luck.

2. the language of price controls consider the market for rental cars. suppose that, in a competitive market without government regulations, the equilibrium price of rental cars is $58 per day, and employees at car rental companies earn $19.50 per hour. complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market. statement price control effect there are many teenagers who would like to work at car rental companies, but the minimum-wage law sets the hourly wage at $23.00. the government has instituted a legal minimum price of $87 per day for rental cars. the government prohibits car rental companies from renting out rental cars for more than $87 per day.

Asap describe three different expenses associated with restaurants. choose one of these expenses, and discuss how a manager could handle this expense.