1. What does the term ‘shadow economy’ mean? 2. How does the shadow economy affect GDP in different countries? 3. What are the main factors influencing the shadow economy? 4. Why is the shadow economy a challenge for the governments?

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GDP and shadow economy

Click on Resources – Library – type the title of the article in the Search window and Read the articles. You can also use pdf. files with the articles posted in Content – Week 1 – Articles for Discussion week 1 area.

  • “More Americans Work in the Shadow Economy” by Zumbrun, Joshua
  • “Cultural Implications for the Shadow Economy”  by Buszko, Andrzej Tomasz
  • “On Estimating the Size of the Shadow Economy  by Kirchgässner, G 
  • “Shadow Economies on the Rise Around the World”  by Prentice, Chris

In your initial response to the topic you have to answer all questions:

1. What does the term ‘shadow economy’ mean?

2. How does the shadow economy affect GDP in different countries?

3. What are the main factors influencing the shadow economy?

4. Why is the shadow economy a challenge for the governments?

5. Reflection – the students also should include a paragraph in the initial response in their own words, using macroeconomic terminology, reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life.

Please also note that your answers should be written in your own words. Don’t use quotes from the articles.