Many countries have a thriving underground economy, of which the production and consumption is not included in
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Many countries have a thriving underground economy, of which the production and consumption is not included in measures of GDP. Researchers have noticed that nations with high tax rates tend to have very large underground economies. Why do you suppose there is a positive relationship between a nation’s tax rates and the relative size of their underground economy?
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Higher tax rates result in more tax evasion ...View the full answer
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