LaunchPad for Microeconomics (Six-Month Access)
LaunchPad for Microeconomics (Six-Month Access)
5th Edition
ISBN: 9781319108557
Author: KRUGMAN, Paul, Wells, Robin
Publisher: Worth Publishers
Question
Chapter 1, Problem 15P
To determine

In October 2015, Hurricane Joaquin caused massive destruction to North and South Carolina, New York, and Florida. Catastrophic flooding occurred, with hundreds of people requiring rescue, 25 killed, and estimated damage of $12 billion. Even those who weren’t directly affected by the destruction were hurt because businesses failed or contracted and jobs dried up. Using one of the principles of economy-wide interaction, explain how government intervention can help in this situation.

Concept Introduction:

Government policies can change spending.

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