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Figure 48.1 -Using Figure 48.1, Modeling the Attacks of September 11, 2001

Question 1

Multiple Choice

Figure 48.1 -Using Figure 48.1, modeling the attacks of September 11, 2001 you would show the impact of higher oil prices by using A) Panel 1 only with a shift from AD<sub>A</sub> to AD<sub>B</sub>. B) Panel 1 only with a shift from AD<sub>B</sub> to AD<sub>A</sub>. C) Panel 2 only with a shift from AS<sub>B</sub> to AS<sub>A</sub>. D) Panel 1 to model the aggregate demand shock (AD<sub>B</sub> to AD<sub>A</sub>) and Panel 2 to model the aggregate supply shock (AS<sub>B</sub> to AS<sub>A</sub>) . Figure 48.1
-Using Figure 48.1, modeling the attacks of September 11, 2001 you would show the impact of higher oil prices by using


A) Panel 1 only with a shift from ADA to ADB.
B) Panel 1 only with a shift from ADB to ADA.
C) Panel 2 only with a shift from ASB to ASA.
D) Panel 1 to model the aggregate demand shock (ADB to ADA) and Panel 2 to model the aggregate supply shock (ASB to ASA) .

Correct Answer:

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