The Following Is an Excerpt from the Exchange in the Nixon-Khrushchev

question 48

Multiple Choice

The following is an excerpt from the exchange in the Nixon-Khrushchev "Kitchen Debate" (Evaluating the Evidence 28.2) . In it, Khrushchev responds to Nixon's description of consumer goods in the United States: Khrushchev: "The Americans have created their own image of the Soviet man and think he is as you want him to be. But he is not as you think. You think the Russian people will be dumbfounded to see these things [household appliances and consumer electronics], but the fact is that newly built Russian houses have all this equipment right now. Moreover, all you have to do to get a house is to be born in the Soviet Union. You are entitled to housing. I was born in the Soviet Union. So I have a right to a house. In America, if you don't have a dollar-you have the right to choose between sleeping in a house or on the pavement. Yet you say that we are slaves of communism. . . ."
According to Khrushchev, which of the following was an important difference between the Soviet Union and the United States?

• A)In the Soviet Union, housing was a basic right.
• B)In the Soviet Union, everyone was rich.
• C)In the United States, all people are poor.
• D)In the United States, housing was in short supply.

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Definitions:

Total Expenditures

Total expenditures refer to the aggregate amount of spending by an entity, covering all categories of expenses within a specific period.

Real Wealth Effect

The change in consumption patterns due to changes in purchasing power, often resulting from price level changes that affect the real value of assets and liabilities.

Aggregate Demand Curve

A graphical representation showing the relationship between the total demand for goods and services in an economy and the overall price level.

Price Level

The average of all current prices for goods and services in an economy, often measured by a price index.