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

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Improving the court system and reducing government corruption can create a more stable and efficient business environment, which encourages investment and innovation. This can lead to increases in productivity, which in turn can raise real GDP per person by making the economy more efficient and increasing the output per individual.

Suppose That a New Government Is Elected in Eurnesia