Author Question: Which aggregate supply curve has a positive slope? A) both long run and short run B) neither long ... (Read 100 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?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

For a complete list of videos, visit our video library