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In 2011, a record-breaking earthquake hit Japan and was followed immediately by a tsunami. This natural disaster destroyed significant capital in Japan, including roads, buildings,
In 2011, a record-breaking earthquake hit Japan and was followed immediately by a tsunami. This natural disaster destroyed significant capital in Japan, including roads, buildings, and even nuclear power plants. What are the impacts, if any, of this shift on the price level and on the natural rate of unemployment? Choose one: A. The price level is unchanged, and the natural rate of unemployment increases. B. The price level increases, and the natural rate of unemployment decreases. C. The price level decreases, and the natural rate of unemployment increases. D. The price level increases, and the natural rate of unemployment is unchanged. E. The natural rate of unemployment and the price level both increase
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