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Suppose a Major Hurricane Hits the Eastern Coast of Florida

Question 61

Multiple Choice

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


A) the production function will have shifted upward.
B) the production function will have shifted downward.
C) the production function will have shifted back to its original position after having shifted downward in the short run.
D) there has been a permanent downward movement along the production function.
E) there has been no effect on the production function and real gross domestic product (GDP) returns to the steady state level.

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