In 2000 the Chinese government mandated three one-week holidays throughout the year to stimulate consumer spending. The idea was that these extended vacations would induce the Chinese to spend more of their earnings while on vacation. A. Using the AD-AS framework, show the mechanism through which the Chinese government believed that the mandated holidays would stimulate the economy.

B. Although consumption spending rose during the vacation period, the data show that consumption fell before and after the vacation. Did the policy work?

Question 3 options: ps.55 four corners is an ibc company that sells delicious navajo tacos in the crossroads food court. part of their success can be attributed to the freshly fried indian bread that is used not only for the tacos, but also for dessert items. as demand grows the fry-bread process is becoming a bottleneck. operations management for the company is looking at two different process options to replace the highly manual process currently being used. option 1 (medium automation) would cost $175 to implement whereas option 2 (high automation) would cost $350. with option 1 the variable cost per fry bread produced would be $0.20. the variable cost for option 2 would be $0.09 per fry bread. at what volume (demand) of fry breads is the cost for the two options the same? (display your answer to two decimal places.)