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

Natural disasters often lead to destruction of infrastructure and disruption of supply chains, resulting in a decrease in output supply. At the same time, there may be an increased demand for output to replace damaged or destroyed goods and services, leading to an increase in output demand. Therefore, choice B is the most appropriate.

The Response of Output Following a Natural Disaster Includes