From 1935 to 2010, the Proportion of Income Received by the Poorest

question 57

Multiple Choice

From 1935 to 2010, the proportion of income received by the poorest 20 percent of Americans has:

• A)increased substantially due to the government's efforts
• B)decreased sharply due to the impact of the Second World War.
• C)slightly decreased due to the impact of the Great Depression.
• D)increased from 12 percent to 14 percent.
• E)remained virtually unchanged.

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Definitions:

Recessions

Periods in which an economy experiences a temporary decline in trade and industrial activity, usually marked by a fall in GDP in two successive quarters.

Budget Deficits

The situation where a government's expenditures surpass its revenues within a specific timeframe, often a fiscal year.

Depression

A prolonged and severe downturn in economic activity, characterized by high unemployment, low consumer spending, and a decrease in production.

Spending

The amount of money expended by individuals, businesses, or governments on goods and services.