-Based on Figure 8

question 117

Essay

-Based on Figure 8.3,"The More Things Change,the More They Stay the Same: Dividing the Nation's Income," what is the general pattern apparent in the distribution of income in the United States over the past 70 years?

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Definitions:

Automatic Stabilizers

Structural features of government spending and taxation that reduce fluctuations in disposable income, and thus consumption, over the business cycle.

Net Taxes

The total taxes paid to the government after subtracting transfers and government spending directly beneficial to the taxpayer, such as social security or unemployment benefits.

Disposable Income

The finance households possess for setting aside savings and covering expenses, following income tax deductions.

Consumption

The use of goods and services by households.