2007-02-12 02:11:17 · 2 answers · asked by brian val R. A 1 in Social Science ➔ Economics
Natural calamities are generally supply side shocks to the economy. For instance, an unexpected hurricane going through the gulf coast causes gasoline refineries to shut down, thus causing supply of gasoline to drop. Another example would be a disastrous blizzard which wipes out a significant portion of crops. This would cause the affected crop to be in shorter supply, and thus price would increase.
2007-02-12 02:35:24 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋
After every calamity there is an improvement in living standards and population growth. After the Influenza Epidemic of 1918, population growth and economic growth soared. After WW II population and economy grew. After famine in China in 1960, population boomed. After the cold war ended, Eastern Europe was reborn. Life renews itself throughout history.
2007-02-15 08:31:29 · answer #2 · answered by JimTO 2 · 0⤊ 0⤋