What was the main cause for the reversal-of-fortune of many countries?
What will be an ideal response?
The reversal-of-fortune can be attributed to the nature of the institutions set up in European colonies around the world. European colonialism was driven by profit motive, and hence, they set up extractive institutions in places that were previously more developed. This drained out the economic prosperity from these well-performing nations and reversed their fortunes. On the other hand, inclusive institutions were set up in places that were previously less developed. This encouraged growth and reversed their fortunes.
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Social Security taxes are paid by
A) employers only. B) employees only. C) both employers and employees. D) neither employers nor employees.
Other things equal, an adverse supply shock would
a. Lower the price level b. decrease real output c. Shift AD left d. Do a. and b. but not c.