ates the magnitude of the response of the surplus to GDP that is embodied in the CBOÆs calculation of the full-employment surplus.ö (Auerbach, 2002, p. 10).

The effect of the information in these two articles on Nike is subjective, of course, but can be summarized by saying that fiscal policy has a significant impact on businesses like Nike because it affects the stabilization of the economy. In a stable economy, Nike does better; in an unstable economy, it suffers, as would most businesses. Since Nike itself has no control over fiscal policy, it is heartening to note that fiscal policy is not the only agent of economic stabilization; there are also automatic stabilizers that can come into play and offset any unfortunate fiscal policy that might cause instability and reduce the GDP.

Since Nike is a company with a strong presence in Japan, an article on AuerbachÆs article by Fumio Hayashi, one of AuerbachÆs discussants, is relevant to this analysis. HayashiÆs article, titled ôCommentary: Is There a Role for Dis