The Diagram Below Shows Alternate Paths for Two Hypothetical Economies,each

question 18

Multiple Choice

The diagram below shows alternate paths for two hypothetical economies,each starting with GDP of $1 billion.Assume that Area 1 is equal to Area 2. FIGURE 25-1 Refer to Figure 25-1.Which of the following statements about Economies A and B is correct?

• A)Economy A will sustain higher material living standards than Economy B in the long run.
• B)Economies A and B will have equal material living standards beginning at Year 0.
• C)Economy B will sustain higher material living standards than Economy A in the long run.
• D)Economies A and B will have equal material living standards beginning at Year X.
• E)Economies A and B will have equal material living standards beginning at Year Y.

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Definitions:

Dawes Severalty Act

A 19th-century U.S. law that aimed to assimilate Native Americans into American society by distributing land to individuals rather than tribes.

Mainstream American Society

The prevailing cultural norms, values, and practices considered typical or standard in the United States.

Supreme Court

The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Fourteenth Amendments

An amendment to the U.S. Constitution, ratified in 1868, that grants citizenship to all persons born or naturalized in the United States and ensures equal protection under the laws.