Author Question: Which aggregate supply curve has a positive slope? A) both long run and short run B) neither long ... (Read 121 times)

leo leo

  • Hero Member
  • *****
  • Posts: 566
Which aggregate supply curve has a positive slope?
 
  A) both long run and short run B) neither long run nor short run
  C) short run only D) long run only

Question 2

What is the underground economy and how could it hurt an economy? How does it hurt developing economies?
 
  What will be an ideal response?



connor417

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

C

Answer to Question 2

The underground economy is that part of the economy involved in buying and selling of goods and services that are concealed from government to avoid taxes or regulations or because the goods and services are illegal. This sector of the economy can serve as a drag on the economy. Firms that participate in the underground economy face the possibility of the government finding out about their operations and shutting them down because they are acting illegally. They tend to be smaller, and invest less in capital. Since workers in this sector have less capital to work with, they are less productive, and produce fewer goods and services. The firm also incurs costs to avoid discovery by the government by paying bribes and hiring lookouts. These are resources that could be used in other productive activities. Because of these reasons, this sector of the economy is not as productive as it might be if it were legal. Less goods and services are produced. This is not an insignificant problem as the underground sector can be large in developing countries as high tax rates drive many firms to the underground sector to seek ways to avoid taxes.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

For a complete list of videos, visit our video library