In 2004, india experienced an earthquake and tsunami that killed nearly 280,000 people, destroyed many offices, houses, and roads and led to the…

In 2004, india experienced an earthquake and tsunami that killed nearly 280,000 people, destroyed many offices, houses, and roads and led to the shutdown of a major number of power plants. The following questions ask about the economic impact of this event.

1. show the effect of the earthquake and tsunami on real wages and the level of employment in the affected region using a labor market model. explain why there are both demand and supply effects.