In 2011, the major earthquake and tsunami in Japan destroyed much of the capital infrastructure in Japan. Those natural disasters were examples of a:

Question

Quizplus · Accepted Answer

The earthquake and tsunami resulted in physical destruction of capital stock in Japan, which would decrease the potential output of the economy in the long run. This is a negative shock to the long-run aggregate supply curve.

In 2011, the Major Earthquake and Tsunami in Japan Destroyed