What are the main factors influencing the shadow economy?

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. 

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