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

Question

Quizplus · Accepted Answer

Following a natural disaster, there is usually an increase in output demand due to the need for repairs, rebuilding and reconstruction. However, there may be a decrease in output supply due to damage to infrastructure, destruction of factories or loss of inventory. Hence, the best choice is E - an increase in output demand and a decrease in output supply.

The Response of Output Following a Natural Disaster Includes