In October 2015, Hurricane Joaquin caused massive destruction to North and South Carolina, New York, and Florida.

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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 and jobs dried up. Using one of the principles of economy-wide interaction, explain how government intervention can help in this situation.

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Microeconomics

ISBN: 978-1319098780

5th edition

Authors: Paul Krugman, Robin Wells

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