The Smaller the Gini Coefficient, the

question 106

Multiple Choice

The smaller the Gini coefficient, the

• A)larger the degree of income equality.
• B)larger the degree of income inequality.
• C)larger the national income relative to population.
• D)smaller the national income relative to population.
• E)larger the size of the government.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a commodity or service, potentially leading to higher prices and lower quantity available.

Money Supply

The aggregate value of all monetary assets in an economy during a specific period.

Federal Reserve

The central bank of the United States, responsible for implementing monetary policy, regulating banks, and ensuring the stability of the financial system.