Using Figure 48.1, modeling the attacks of September 11, 2001, you would show the aggregate demand shock by using 
Figure 48.1
A. Panel 2 only with a shift from ASA to ASB.
B. Panel 1 only with a shift from ADB to ADA.
C. Panel 1 only with a shift from ADA to ADB.
D. Panel 1 to model the aggregate demand shock (ADB to ADA) and Panel 2 to model the aggregate supply shock (ASB to ASA).
Answer: B
You might also like to view...
Which of the following is true of a competitive market? a. The rules of supply and demand do not apply to it
b. Buyers and sellers have little market power. c. Each buyer's or seller's effect on market price is substantial. d. Few sellers offer similar products.
Total profit equals
a. TR ? TC. b. average profit times total output. c. total sales revenue minus total cost. d. All of the above are correct.
Complete the following sentence: At the most profitable level of production, a firm's marginal cost will be _____ the marker price.
a) equal to b) set by c) less than d) greater than
Joe works in a factory producing chemicals used in paint manufacturing. If he is concerned about the effects of the chemicals that he works with on his health, he should contact which regulatory agency?
A. Securities and Exchange Commission (SEC) B. Environmental Protection Agency (EPA) C. Food and Drug Administration (FDA) D. Occupational Safety and Health Administration (OSHA)