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).
Answer: B
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Full employment occurs
A) only if the unemployment rate is zero. B) only if the unemployment rate is equal to the natural unemployment rate. C) only if unemployment is equal to structural unemployment plus cyclical unemployment. D) None of the above answers are correct.
Which of the following is a surplus item in the U.S. current account?
A) The U.S. government reduces the tariff rates on some imported goods. B) IBM pays dividends to British shareholders. C) Finn vodka becomes more popular in the United States. D) The U.S. government cuts back on military personnel stationed in S. Korea.