The normal life cycle pattern of income
a. contributes to more inequality in the distribution of annual income and to more inequality in living standards.
b. contributes to more inequality in the distribution of annual income, but it does not necessarily contribute to more inequality in living standards.
c. contributes to less inequality in the distribution of annual income and to less inequality in living standards.
d. has no effect on either the distribution of annual income or on living standards.
b
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A competitive price-taker market in long-run equilibrium is described as efficient because firms
a. produce at the low point on their average cost curve. b. produce where marginal cost yields a profit. c. earn no more than the cost of capital. d. are not profitable.
If a government wants to decrease economic growth, it would use a contractionary fiscal policy that might involve
A. increasing government spending. B. increasing taxes. C. decreasing regulations. D. decreasing unemployment.