International per capita GDP comparisons are misleading when countries involved differ greatly in the percentage of economic activity that is transacted in organized markets.  

1) Why is it?

Why do permanent tax cuts have a greater impact on consumption than temporary tax cuts?

Permanent tax cuts affect expectations of long-run income more than temporary tax cuts.

2) Tell me more details why.

Answer rating: 100% (QA)

1International Per Capita GDP Comparisons Comparing per capita GDP across countries can be misleading when the percentage of economic activity transac... View the full answer