In every state, there is a government-subsidized university. This subsidy, in theory, would make it possible for tuition to be lower than it otherwise would have been. How might an economist employed by the government justify the subsidy

The economist employed by the government will justify the subsidy by saying it is expected to increase the productivity which is the basis for the long run aggregate supply curve.

Basically, a subsidies is a program which are provided for education to improve the skills of the individuals going to college.

Economically, the program is expected to increase the productivity which is is the basis for the long run aggregate supply curve.

Now, once the productivity is increased, the potential GDP is increased and thus, the long-run aggregate supply curve is shifted to the right which increases the current GDP as well.

In conclusion, the economist employed by the government will justify the subsidy by saying it is expected to increase the productivity which is the basis for the long run aggregate supply curve.