-In the Above Figure, the Straight Line Between the Lower

question 70

Multiple Choice

-In the above figure, the straight line between the lower left corner and the upper right corner shows

• A) perfect equality in income distribution.
• B) perfect inequality in income distribution.
• C) that wealth rises as income rises.
• D) that household size rises as income rises.

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Definitions:

Unexpectedly High

A level or measure that exceeds what was anticipated or forecasted.

Natural Rate

The long-term rate of unemployment around which the unemployment rate fluctuates, or the rate of output expected when resources are fully employed.

Aggregate Demand

The complete demand for all categories of goods and services in an economy, evaluated at a given price level for a particular period.

Inflation

How fast the broad price levels for goods and services climb, undercutting the ability to buy.