It is possible for everyone to be better off (in absolute terms)even though the income distribution has become more unequal.

Question

Quizplus · Accepted Answer

It is possible for overall income to increase for everyone, while at the same time income distribution becomes more unequal. For example, if the economy grows and overall income increases, but the wealthiest individuals see a disproportionate increase in their incomes, the income gap would widen, but everyone would still be better off in absolute terms.

It Is Possible for Everyone to Be Better Off (In