Consider the policy application of Hurricanes and the Labor Market that was presented in the text.
(a) How does labor demand and labor supply typically shift following a natural disaster?
(b) The data on changes in employment and wages in Table 4-5 suggest that the magnitude of relative shifts in labor demand and labor supply depend on the severity of the natural disaster. According to the data, does labor demand shift more relative to labor supply in mild or in extreme natural disasters. Provide intuition for this finding.