Suppose that you are trying to determine the after effects
A) Suppose that you are trying to determine the after effects of hurricane Katrina on the economy of Louisiana.
Which assumptions could be made to simplify the study?
1) Consider the effects on all of Louisiana’s interstate trade partners.
2) Determine the effects while holding the infrastructure and factors of production constant.
3) Compare the change in prices for all goods
4) Track the total net worth of the output produced by the state prior to the hurricane and after the hurricane.
5) Focus on just the crawfish and catfish farming industries in Louisiana.
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