Which of the Following Is True of the Wage Gap

question 12

Multiple Choice

Which of the following is true of the wage gap between the top 10 percent of earners and the bottom 10 percent of earners in the U.S.economy?

• A) The wage gap has increased over time.
• B) The wage gap has decreased over time.
• C) The wage gap has remained the same over time.
• D) There is hardly any wage gap between the two groups in the U.S. economy.

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Definitions:

Cyclical Unemployment

Unemployment attributed to the cyclical trends in the economy, typically increasing during recessions and decreasing during expansions.

Recovery Phase

A stage in the economic cycle where economic activity picks up and GDP starts to rise again after a period of decline or recession.

Prosperity Phase

A stage of the business cycle in which economic activity is growing, leading to higher levels of employment, income, and production.

Recession Phase

is a period of temporary economic decline during which trade and industrial activities are reduced, typically identified by a fall in GDP in two successive quarters.