Short Run Dis-equilibrium & the Long Run Adjustment Process: After reading the following article about Japan's 2011 Earthquake, Tsunami and Nuclear Reactor Meltdown, what would the predicted impact of these occurrences on Japan's economy? (You can assume the shock is temporary).

http://www.brookings.edu/blogs/up-front/posts/2013/03/11-japan-earthquake-ferris-solis

1. The natural disaster and nuclear disaster described caused serious production issues, this would initially cause an unanticipated (check one)

• reduction in Short Run Aggregate Supply
• reduction in Aggregate Demand
• increase in Short Run Aggregate Supply
• increase in Aggregate Demand