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If a large increase in investment increases labor productivity, explain what happens to: i. Potential GDP ii. Demand and supply of labor iii. Employment iv.
If a large increase in investment increases labor productivity, explain what happens to: i. Potential GDP ii. Demand and supply of labor iii. Employment iv. The real wage rate v. Real GDP per person
b. If a severe drought decreases labor productivity, explain what happens to: i. Potential GDP ii. Demand and supply of labor iii. Employment iv. The real wage rate v. Real GDP per person
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