Shocks in the Crusoe island economy Big school of fish swims by island.Then,GDP rises because Crusoe's fishing productivity is higher Crusoe's employment rises:he decides to shift some time from leisure to fishing to take advantage of the high productivity Big storm hits the island.Then,GDP falls: The storm reduces productivity,so Crusoe spends less time fishing for consumption. More importantly,investment falls,because it's easy to postpone making nets until storm passes Employment falls:Since he's not spending as much time fishing or making nets,Crusoe decides to enjoy more leisure time.• Shocks in the Crusoe island economy • Big school of fish swims by island. Then, GDP rises because – Crusoe’s fishing productivity is higher – Crusoe’s employment rises: he decides to shift some time from leisure to fishing to take advantage of the high productivity • Big storm hits the island. Then, GDP falls: – The storm reduces productivity, so Crusoe spends less time fishing for consumption. – More importantly, investment falls, because it’s easy to postpone making nets until storm passes – Employment falls: Since he’s not spending as much time – fishing or making nets, Crusoe decides to enjoy more leisure time