Answer the following statements true (T) or false (F)
1. In the U.S. in 2010, the top 1% of households held 35% of total wealth - leaving 65% of wealth to the remaining 99% of households.
2. Differences in skills or ability are one major reason for income differences in the United States.
3. The unequal distribution of wealth among households in the United States is one of the causes of income inequality.
4. During the past thirty-five years or so, the degree of income inequality in the United States has decreased considerably.
5. If income inequality is increasing, it means that the income levels of the poor are falling while the income levels of the rich are rising.
1. T
2. T
3. T
4. F
5. F
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An economy is experiencing a high rate of inflation. The government wants to reduce aggregate demand by $36 billion to reduce inflationary pressure. The MPC is 0.75. By how much should the government raise taxes to achieve its objective?
A. $9 billion B. $6 billion C. $16 billion D. $12 billion
Long-run aggregate supply shocks are a source of business cycle fluctuations in ________
A) traditional Keynesian and new Keynesian theory B) new Keynesian and real business cycle theory C) real business cycle and traditional Keynesian theory D) traditional Keynesian, new Keynesian and real business cycle theory
A decrease in the price of bubble gum below equilibrium will
A. Shift the bubble gum demand curve to the right. B. Cause a shortage of bubble gum. C. Cause a surplus of bubble gum. D. Shift the bubble gum supply curve to the right.
Which round of GATT led to the formation of the WTO?
What will be an ideal response?