Suppose the rural part of a country is hit by a major earthquake that destroys 10 percent

Question:

Suppose the rural part of a country is hit by a major earthquake that destroys 10 percent of the country’s housing stock. The government and private sector respond with a major construction effort to help rebuild houses. Discuss how this episode is likely to affect
(a) The economic well-being of the people in the country and
(b) The economy’s measured GDP.