Explain How,according to the Theory of PSST (Patterns of Specialization

question 109

Essay

Explain how,according to the theory of PSST (patterns of specialization and sustainable trade),economic activity can decline in the face of unchanged aggregate demand.Give a hypothetical example to help support your answer.

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Definitions:

Private-Profit

Income or gain derived from one's business, profession, or capital, exclusive to the individual or corporation earning it.

Officers

Individuals appointed to manage the day-to-day operations of a corporation, such as a CEO, CFO, or secretary, and are authorized to make decisions on behalf of the corporation.

Criminally Responsible

The condition of being legally accountable for actions that are classified as criminal offenses.

Illegal Tax Evasion

The unlawful act of not paying taxes that are legally owed by concealing income, inflating deductions, or using other illicit means.