Suppose that a new government is elected in Eurnesia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably
raise real GDP per person and productivity in Eurnesia.
raise real GDP per person but not productivity in Eurnesia.
raise productivity but not real GDP per person in Eurnesia.
raise neither productivity nor real GDP per person in Eurnesia.
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