Longitudinal data on income inequality in the United States indicates that:
a. children of poor families stay poor, but children of rich families do not always stay rich
b. children of poor families often escape poverty, but rich families invariably retain their wealth over time.
c. there is substantial movement among income groupings in the United States.
d. the rich are getting richer and the poor are getting poorer.
c
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President George W. Bush and congress cut taxes and raised government expenditures in 2003 . According to the aggregate supply and aggregate demand model
a. both the tax cut and the increase in government expenditures would tend to increase output. b. only the tax cut would tend to increase output. c. only the increase in government expenditures would tend to increase output. d. neither the tax cut nor the increase in government expenditures would tend to increase output.
The economy in the period 1950 to 1998 behaved differently than the economy in the 1870 to 1940 time period. Economists explain this difference
A. in part because of the use of stabilization policy. B. because of increases in U.S. population due to the “baby boom.” C. in part because of the globalization of the economy. D. in part because of the use of competition policy.