If the Poor Participated at Higher Levels in the Political

question 4

Multiple Choice

If the poor participated at higher levels in the political process,what might happen?

• A)government workers would likely unionize
• B)government-run services would likely be privatized -Consider This: Privatization of government-run services often harm the recipients of those services.
• C)government programs to help individuals invest their Social Security income would likely be higher on the political agenda
• D)government programs to alleviate economic inequality would likely be higher on the political agenda

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Definitions:

Potential Output

The highest level of economic output that can be achieved sustainably without causing inflation.

Long Run

A period in which all inputs can be adjusted by firms, and all market adjustments have been made.

Nominal Wages

The amount of money received by an employee before any deductions and not adjusted for inflation; the face value of wages.

Potential Output

The highest level of real GDP that can be sustained over the long term without increasing inflation, reflecting the economy's maximum productive capacity.