Since a trade-off exists between total output and equality of income distribution,

A. greater equality of distribution will generally result in higher levels of output.
B. greater output is generally associated with more equal distribution.
C. policies designed to increase output will only succeed if distribution is more equal.
D. policies intended to expand output must necessarily fail.
E. policies designed to equalize distribution may adversely affect the size of output.

Answer: E

Economics

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