Question

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:_________. a. raise real GDP per person but not productivity in Eumesia. b. raise productivity but not real GDP per person in Eurnesia. c. raise real GDP per person and productivity in Eumesia. d. raise neither productivity nor real GDP per person in Eurnesia.

Answer 1

Answer is C. raise real GDP per person and productivity in Eumesia.

Refer below.

Step-by-step explanation:

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 Eumesia.

Answer 2

C. Raise productivity per person and real GDP in Eurnesia

Step-by-step explanation:

Generally, it is believed that there's a causation between corruption and economic growth and development. Higher corruption or higher rate of corruption leads to lower economic growth rate and lower rate of corruption leads to higher economic growth rate. Therefore, higher corruption leads to lower productivity and a reduction in the real GDP. If a new government comes in and reduce government corruption, changes associated with that will include an increase in the productivity level per person and also an increase in the Real GDP in Eurnesia.