Record-high river levels led to severe floods in parts of Nebraska, Iowa, Wisconsin, Minnesota, and South Dakota in March 2019. As the New York Times reports, many residents were forced to evacuate while some neighborhoods and towns were left isolated.

By disrupting transportation and communication networks, natural disasters like those recently experienced in the Midwest reduce our ability to combine capital and labor to produce valuable goods and services. Use the five-panel model (i.e., labor market, production function, 45 line, AS-AD, IS-LM) to consider the effects of a natural disaster on the macroeconomy under the assumption that prices are perfectly flexible. Be sure to label your graph completely. Include a key to define all variables used. Provide a brief description. Finally, discuss whether the results described are likely to be permanent or temporary.