Question
A large campfire called the Camp Fire ravaged northern California, burning more than 150,000 acres and destroyed almost 10,000 structures. A news article published on
A large campfire called the Camp Fire ravaged northern California, burning more than 150,000 acres and destroyed almost 10,000 structures. A news article published on USA Today.com estimated damages from the camp fire cost insurance companies approx. $11.4 bio. (a) when the homes and buildings burned down in November 2018, how did this affect the U.S. GDP for 2018? Include one example and one macroeconomic reason to support your response. (b) As the owners begin the re-construction of the homes and buildings, how does this affect U.S. GDP during the period when the re-construction takes place? Include one example and one macroeconomic reason to support your response. (c) Suppose a house was rebuilt (from the ground up) in 2019 and sold in 2022 (1st qtr.), does the house sale affect U.S. GDP in 2019 or in 2022? Include a macroeconomic reason to support your response
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