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Question
Comparing U.S. income inequality in 1980 and 2010 produces a distorted picture for all EXCEPT which of the following reasons?
a. There have been dramatic shifts in the U.S. labor force.
b. It violates the principle of ceteris paribus.
c. A wider gap between years measured produces a more easily perceived trend in income inequality.
d. A surge in in-kind transfers means poorer individuals have greater disposable income.
e. Changes in tax rates alter the wealth composition in the economy.
Answer
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