If Real GDP Grows by 3% in 2009,3

question 108

Multiple Choice

If real GDP grows by 3% in 2009,3.2% in 2010,and 2.5% in 2011,what is the average annual growth rate of real GDP?

• A) 2.6%
• B) 2.9%
• C) 3.1%
• D) 4.2%

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Definitions:

Income Inequality

Refers to the uneven distribution of income and wealth across the different participants in an economy.

In-kind Transfers

Non-cash benefits provided by the government to individuals, such as food stamps, housing assistance, and medical services, aimed at meeting basic needs.

Redistribution of Income

The transfer of income from certain individuals or groups to others through mechanisms like taxes, subsidies, and social welfare programs.

Equalizing Opportunities

Efforts or policies aimed at leveling the playing field so that individuals have equal chances to succeed, regardless of their background or circumstances.