Which of the following statements concerning the Japanese earthquake in 2011 is true?
A) Paul Krugman's predictions about the long-term effects of the earthquake were not correct.
B) There is no short-term but only long-term effect on the Japanese economy.
C) The loss of labor and capital resulting from the earthquake was large relative to the size of the Japanese economy.
D) The theory of economic fluctuations predicts that the initial direct effects of the earthquake can have feedback effects on the entire Japanese economy.
E) The theory of economic growth predicts that the earthquake will definitely have no impact on the long-term growth of the Japanese economy.
Correct Answer:
Verified
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