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A variable that can't be accounted for is The author backs up the statement that the economy
can be unpredictable by pointing out that
a natural disaster such as a hurricane. As the result of a hurricane, demand is guaranteed
to increase in a way that could not have been (A) banking panics occur when confidence in the financial
system is strong.
predicted because the flow of goods into (B) natural disasters can affect the demand for goods and
disrupt production.
impacted areas is blocked. If crops or power
facilities like oil refineries are damaged, then C. customers are more willing to buy something when
interest rates are low.
demand is also affected. (D) inflation occurs when prices for goods and services
decrease too quickly.

Ask by Klein Mcfarlane. in the United States
Mar 31,2025

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The correct answer is (B) natural disasters can affect the demand for goods and disrupt production.

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Extra Insights

In the realm of economics, natural disasters like hurricanes showcase how unforeseen events can drastically alter market dynamics. Not only do they disrupt supply chains, but they also lead to a spike in demand for essential goods. Think about how quickly people rush to buy supplies like water and batteries when a storm is approaching—a perfect example of unpredictable demand!
Furthermore, understanding the impact of such events on economics can prepare us for unforeseen crises. A good technique is to keep an eye on historical patterns after disasters, as they can reveal insights on consumer behavior and demand shifts. Common mistakes include underestimating the resilience of certain markets or assuming that demand will always follow pre-disaster trends, which can lead to significant inventory miscalculations.

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\begin{tabular}{l|l}\multicolumn{1}{l}{ A variable that can't be accounted for is } & The author backs up the statement that the economy \\ can be unpredictable by pointing out that \\ a natural disaster such as a hurricane. As the & result of a hurricane, demand is guaranteed \\ to increase in a way that could not have been & (A) banking panics occur when confidence in the financial \\ system is strong. \\ predicted because the flow of goods into & (B) natural disasters can affect the demand for goods and \\ disrupt production. \\ impacted areas is blocked. If crops or power \\ facilities like oil refineries are damaged, then & C. customers are more willing to buy something when \\ interest rates are low. \\ demand is also affected. & (D) inflation occurs when prices for goods and services \\ decrease too quickly. \end{tabular}
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