Which of the following statements is correct?
a. The poverty line is a relative standard.
b. More families are pushed above the poverty line as economic growth pushes the entire income distribution upward.
c. Increasing income inequality reduces poverty.
d. Economic growth, by definition, affects all families equally.
b
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
A currency's role as an international unit of account is due to
A) invoicing costs. B) transaction costs. C) information costs. D) intervention costs.
A large factory pours its toxic wastewater into a nearby river, and as a result, the residents of a downstream community experience high rates of illness and birth defects. The economic problem illustrated by this example is
A. marginal thinking. B. comparative advantage. C. repealing the laws of supply and demand. D. externalities. E. productivity growth.
Which of the following is an example of expansionary fiscal policy?
a. Decrease government spending. b. Increase government spending. c. Increase taxes and decrease government spending equally. d. Increase taxes.