If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A) short-run supply shock.
B) long-run supply shock.
C) short-run demand shock.
D) long-run demand shock.

Question

Quizplus · Accepted Answer

A hurricane wiping out the majority of the eastern seaboard would lead to destruction of infrastructure, buildings, and homes causing a long-term supply shock. The restoration of the infrastructure takes time, and hence the supply shock will last for a more extended period.

If a Hurricane Were to Wipe Out the Majority of the Eastern