Suppose That a New Government Is Elected in Tempestia

question 64

Multiple Choice

Suppose that a new government is elected in Tempestia.The new government takes steps toward improving the court system and reducing government corruption.The citizens of Tempestia find these efforts credible and outsiders believe these changes will be effective and long lasting.These changes will probably

• A)raise real GDP per person and productivity in Tempestia.
• B)raise real GDP per person but not productivity in Tempestia.
• C)raise productivity but not real GDP per person in Tempestia.
• D)raise neither productivity nor real GDP per person in Tempestia.

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Definitions:

Official Income Data

Income statistics and figures released by governmental or authoritative bodies, reflecting incomes across various demographics.

Purchasing Power

The value of currency expressed in terms of the amount of goods or services that one unit of money can buy.

Noncash Transfers

Benefits provided by the government or organizations in forms other than direct cash, such as food stamps or housing subsidies.

Prejudiced Employer

An employer that treats potential or current workers unfairly based on personal prejudices that have nothing to do with how well they perform their jobs.