Solved

Suppose a Hurricane Destroys 20 Percent of the Capital Stock

Question 92

Multiple Choice

Suppose a hurricane destroys 20 percent of the capital stock in a country. In the long run, output will
________ and the price level will ________.

A) decrease; decrease
B) decrease; increase
C) decrease; remain unchanged
D) remain unchanged; remain unchanged
E) remain unchanged; increase

Related Questions

Q18: An increasing number of firms decide to

Q27: An increase in investment spending can be

Q48: In 2013,the price of gas was $3.60

Q63: In the long run,the output of an

Q92: Unemployment rises and real gross domestic product

Q96: Refer to the following figure to answer

Q96: Perfect summer weather increases farm output by

Q124: If people expect higher incomes in the

Q130: The relationship between sticky input prices and

Q144: If the current short-run equilibrium level of