If a Lorenz Curve for Income Moves Rightward and Becomes

question 117

Multiple Choice

If a Lorenz curve for income moves rightward and becomes more bowed out over time, then

• A) the population is growing.
• B) income is growing.
• C) income is being more equally distributed.
• D) income is being more unequally distributed.

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Definitions:

Population

The total number of individuals inhabiting a particular area or country, including both the native and any transient groups.

Global Financial Panic

A worldwide period of financial instability characterized by widespread fear and withdrawal of investment.

Aggregate Supply

The total supply of goods and services that firms in an economy plan to sell during a specific time period at various price levels.

Aggregate Demand

The total demand for final goods and services in an economy at a given time, encompassing consumption, investment, government spending, and net exports.