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6. If a large increase in investment increases labor productivity, explain what will happen to a. Potential GDP? b. Employment? c. The real wage rate?
6. If a large increase in investment increases labor productivity, explain what will happen to a. Potential GDP? b. Employment? c. The real wage rate? If a severe drought decreases labor productivity, explain what will happen to d. Potential GDP? e. Employment? f. The real wage rate?
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