The response of output following a natural disaster includes
A) an increase in output demand and an increase in output supply.
B) an increase in output demand and a decrease in output supply.
C) a decrease in output demand and an increase in output supply.
D) a decrease in output demand and a decrease in output supply.
E) only a decrease in output demand.

Question

Quizplus · Accepted Answer

Following a natural disaster, there is likely to be an increase in output demand due to the need for resources, materials, and services to rebuild and repair damaged infrastructure. However, there may also be a decrease in output supply due to the damage to the means of production, disruption of transport systems, or the displacement of workers. This can lead to higher prices for goods and services, which can further exacerbate the decrease in output supply. Therefore, an increase in output demand and a decrease in output supply are the most likely responses following a natural disaster.

The Response of Output Following a Natural Disaster Includes