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

question 43

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_A to AD_B.
• B)Panel 1 only with a shift from AD_B to AD_A.
• C)Panel 2 only with a shift from AS_B to AS_A.
• D)Panel 1 to model the aggregate demand shock (AD_B to AD_A)and Panel 2 to model the aggregate supply shock (AS_B to AS_A).

---

Definitions:

Short-Term Investments

Investments that are readily marketable and intended to be converted into cash within the next year or operating cycle, whichever is longer.

Total Current Liabilities

Total current liabilities are the sum of all debts and financial obligations a company owes within the next year.

Discontinued Operations

A segment of a company's business that has been sold or ceased to operate, and its financial results are separately reported from continuing operations.

Book Value

The net value of a company's assets as shown on the balance sheet, calculated as total assets minus intangible assets and liabilities.