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Chapter 8, Problem 2FCT
To determine

The differing levels of government business regulations and varying levels of enforcement of those regulations might affect the size of the underground economy.

Concept introduction:

Underground economy: the underground economy is a place where illegal economic activities are taking place like market for black money, illegal currency printing and black market etc… The activities in the underground economy are not monitored by the Government or any Regulatory body. The underground economy can be sometimes considered as a parallel economy to the Government controlled economy.

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