Suppose a major hurricane hits the eastern coast of Florida and only destroys significant amounts of physical capital.In the short run,you would expect that

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In the short run, the destruction of significant amounts of physical capital would result in a decrease in production capacity (represented by a leftward shift of the production function). This would result in a downward movement along the production function as the economy operates at a lower level of output.

Suppose a Major Hurricane Hits the Eastern Coast of Florida