The existence of periodic overproduction crisis is a main characteristic of the market economy system.
In general, the more than an economy can produce, the better as the GDP (Gross Domestic Product) figures increase, there is economic growth and high income and employment figures .
But if an excessive quantity of production is offered in the markets in relation to the amounts demanded, there will be situations of excess supply. If such situations cannot be balanced, a big crisis arises, as producers will have large unsold stocks, factories with an enormous capacity if compared to the amount they can sell according to the demand, and much more workers than they need.
In this situation many plants have to close down, workers are fired and sometimes even the whole business goes bankrupt.
The contradiction happens because high production figures are not leading to economic growth or recording positive figures. Alternatively, an overproduction crisis takes place with the very negative consequences described above.
Answer: undergound economy is when goods and services are bought and sold under the table without receipts, invoices or bills or any document that accredits the transaction. The intention is not to pay taxes and avoid expenses related to the transactions.
Explanation: the reason of underground economy is mainly poverty, ignorance and excessive regulation. Governments also make the cost of being formal and paying taxes very expensive with excessive regulations that tend to sink companies with high taxes and debt.
Nullification means to veto or remove and the state senate could form and state law to boycott the federal goverments law but that veto could overruled by the supreme court.
Woodrow Wilson is a Democrat, not a Republican
