What Impact Did the Wartime Economy Have on the Distribution

question 34

Multiple Choice

What impact did the wartime economy have on the distribution of American incomes?

• A) The proportion of wealth controlled by the richest 5 percent of the population soared to nearly one-third.
• B) The proportion of wealth controlled by the poorest 20 percent of the population dropped to about 10 percent.
• C) The earnings of the middle class doubled.
• D) The middle class stagnated as it found itself caught between wage freezes and soaring inflation.
• E) The poor sank deeper into poverty because the focus was on foreign affairs rather than their plight.

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Definitions:

Lorenz Curves

A graphical representation used in economics to show the distribution of income or wealth within a population, indicating inequality.

Relative Distribution

A measure of how income or wealth is shared among individuals or groups within a society.

Income

A flow of money to households.

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of the population living in poverty.