When an economy experiences strong economic growth,
a. the number of families in the bottom 10 percent of the income distribution decreases
b. the income of families in the bottom of the income distribution increases
c. only the top of the income distribution is affected
d. the accompanying inflation cancels out any change in income distribution
e. the rich are no better off because taxes rise with income
B
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To ensure that the fundamental identity of national income accounting holds, changes in inventories are
A) treated as part of expenditure. B) treated as part of saving. C) ignored. D) counted as consumption.
A decrease in the real interest rate occurs when ________
A) there is an autonomous tightening of monetary policy B) expected inflation increases, relative to the nominal interest rate C) a decrease in autonomous spending causes a decrease in equilibrium output D) all of the above E) none of the above