Which of these is true about GDP and equality? a. Equality is guaranteed in countries with high GDP b. Lower GDP means more inequality c. There is no clear relationship between GDP and equality d. Higher GDP means more inequality

Which of these is true about GDP and equality? a. Equality is guaranteed in countries with high GDP b. Lower GDP means more inequality c. There is no clear relationship between GDP and equality d. Higher GDP means more inequality

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 8QR

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Question

Which of these is true about GDP and equality?

Equality is guaranteed in countries with high GDP

Lower GDP means more inequality

There is no clear relationship between GDP and equality

Higher GDP means more inequality

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Government purchases of goods and services $150 Government borrowing $60 Government Taxes = $100 Government transfers = $10 %3D Private savings = $200 %3D Consumer Wages, profit, interest, rent = $800 Households spending = $510 Markets for goods and services Factor Financial markets markets Gross Wages, profit, interest, rent = $800 domestic Borrowing and stock issues by firms = $110 product %3D %3D Firms Investment spending = $110 %3D Foreign borrowing and sales of stock = $130 Exports = $50 %3D Rest of world Foreign lending and purchases of stock = $100 Imports = $20 %3D
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