Which of the Following Statements About the Distribution of Income

question 83

Multiple Choice

Which of the following statements about the distribution of income in the United States is true?

• A) Since 1968, the distribution of income has become more unequal.
• B) Since 1968, the share of income going to the richest families has decreased.
• C) Since 1968, the share of income going to the poorest families has risen.
• D) The degree of inequality in the distribution of income remained stable between 1968 and 2010.

---

Definitions:

Aggregate Demand

The total demand for all goods and services in an economy at a given general price level and in a given time period.

Aggregate Supply

The aggregate output of goods and services that companies in a national economy aim to market within a given timeframe.

Classical Economic Theory

A broad school of thought in economics that emphasizes the role of market forces and the flexibility of prices in achieving economic equilibrium, advocating minimal government intervention.

Stagflation

A situation in an economy where the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.