Q1. Consider the economy as summarized by the above equations. Assume which the mix of fiscal and monetary policies is changed such which the money supply is increased by 100 while the government spending is reduced by 250.
Q2. The profitability of the leading cola syrup manufacturers PepsiCo and Coca-Cola and of the bottlers in the cola business is dissimilar. PepsiCo and Coca-Cola enjoy an 81 percent operating profit as a sales percentage. Perform a Porter's Five Forces analysis which explains why one type of business is potentially so profitable relative to the other.