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If you are easy then you get 25% added leadership, 25% more research points, and you use 25% less supplies. Very easy doubles these. If you are hard, you use more supplies. Easy AIs have less organization for their units (I think) but hard AIs get numerous bonuses like all of their pops militancy ratings have a -0.05 a month, they use less supplies, have a badboy reduction per month (-0.05), and get more research and leadership. I don't know the entire details (because I've screwed with mine so much) but you can see them in the static_modifiers section.
 
I'm pretty sure its either in the Patch release notes, or if not there, then I'm sure it was posted in one of the pre-1.2 patch teasers.
 
Actually here you go: http://forum.paradoxplaza.com/forum...10th-September-Update&p=11622816#post11622816

Also all sorts of Dev comments can be found on this thread: http://forum.paradoxplaza.com/forum/showthread.php?426831-Developers-Comments
It's in the FAQ section along with other useful info.

Also if you go to google, and search: "site:forum.paradoxplaza.com Victoria 2 Query", without quotations and replacing Query with your actual search words, then you can effectively search this forum.

An example would be site:forum.paradoxplaza.com Victoria 2 difficulty.