Just answer question 3, thanks..... B AThe Economics of TerrorismOn 11 September 2001, terroristshijacked commercial airliners inthe US and turned them intoweaponsTwo of th Assignment 2.jpg hedinto the World Trade Center inNew York City. Of the 50 000people who worked in the twintowers each day, an estimated 3000perished in the attack. The worldwill never be the same-politically,economically, militarily, andsocially-as a result of this attackon the world's most powerfulnation.Sept. 17: Stockprices plunge 684.81points after tradingresumes followinglongest shutdown ofNYC stock exchangesince the Depression.Sept. 24: Marketsrebound Mondayfollowing stockmarkets' worstweek since 1933.Sept. 21: Dow closesat post-attack low of8235.81.Evidence indicates that theterrorists planned and executedtheir suicide missions carefully.It appears that their targets werespecifically chosen to cause asmuch pain and suffering as possi-ble, to attack important symbols ofAmerican strength and power, and,ultimately, to have maximum nega-tive impact on global economicsystems. Stock markets around theworld experienced a sharp declineas a result of the attack and itsdestabilization of investor confidence.The recovery was slow and fragile.Sept. 19: Central bankspump billions of dollarsin loans into economyin order to calm panic.Sept. 28: PresidentBush approves$15-billion bailout ofcrippled airlineindustry; Air Canadaseeks $4-billion aidpackage from Ottawa.Chapter GoalsQUESTIONSBy the end of this chapter, you will be able to1. What was the symbolic significance of a successfulterrorist attack on the World Trade Center?2. Explain the economic significance of the changesin stock market prices illustrated by the graph above.3. The short-term consequences of the attack appearsignificant. Do you expect the long-term effects tobe as significant? Explain.• realize the importance of economics as asocial science,• understand how an economy works,• begin thinking like an economist,• use models to explore basic economiclaws and fallacies,explore career opportunities in the fieldof economics.

QUESTIONS 1. What was the symbolic significance of a successful terrorist attack on the World Trade Center? 2. Explain the economic significance of the changes in stock market prices illustrated by the graph above. 3. The short-term consequences of the attack appear significant. Do you expect the long-term effects to be as significant? Explain.

QUESTIONS 1. What was the symbolic significance of a successful terrorist attack on the World Trade Center? 2. Explain the economic significance of the changes in stock market prices illustrated by the graph above. 3. The short-term consequences of the attack appear significant. Do you expect the long-term effects to be as significant? Explain.

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 9PA

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please help as soon as possible ,t hank you
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