QUESTION # FOUR

Natural disasters, in addition to human suffering, cause substantial damages to the homes, roads, and other infrastructures.For instance, in 2012, Hurricane Sandy, the second costliest hurricane in the US history hit the northeastern shores of the United States and resulted in more than $50 billion damages.Normally, the reconstruction efforts begin soon after the onset of the natural disaster. Some economists argue that, setting aside the human sufferings, these natural disasters will eventually result in an increase in the GDP of the affected regions and consequently the overall US GDP. Explain this argument and state how is it possible that a natural disaster can lead to increase in the nation's GDP.