Purchases and sales of government securities by the Federal Reserve are called

As unemployment rose during 1930 through 1932 and the economy plunged into the Great Depression, policy makers

a. reduced tax rates and increased the money supply. b. increased tax rates and reduced the money supply. c. increased both tax rates and the money supply. d. reduced both the tax rates and the money supply.

Using Figure 48.1, modeling the attacks of September 11, 2001, you would show the aggregate supply shock by using Figure 48.1

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