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Determine whether the following statements are True or False. Be sure to explain your answer. Each sub-part of the question is not related to other
Determine whether the following statements are True or False. Be sure to explain your answer. Each sub-part of the question is not related to other sub-parts. a) If the government wants to stimulate output and to accumulate a larger capital stock, then it should provide a subsidy to investment. However, this kind of subsidy to investment would have no long-run effect on real wages. Explain what the answer looks like in both the long-run and very long-run. Are these the answers the same or different? Explain why or why not. Be sure to support your answer with ONE loanable funds diagram and ONE labour market diagram. (8 points)
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