Recall the Application about why international trade may reduce measured inequality in the United States to answer the following question(s). While it is conventional wisdom now that inequality in the United States has increased in the last several decades, until recently no one has taken a careful look at the actual living standards of different income groups, taking into account the goods they purchase. Two economists from the University of Chicago, Christian Broda and John Romalis, investigated the living standards of low-income groups and high-income groups based on the goods these groups purchase.
-According to this Application, while inequality has increased in the United States in the last several decades, the study done by Broda and Romalis indicates that

Question

Quizplus · Accepted Answer

The study conducted by Broda and Romalis suggests that when measured in terms of the goods that low-income and high-income groups actually purchase, living standards have not become more unequal despite the increase in inequality over the past several decades in the United States. Therefore, the correct answer is A, living standards have not become more unequal.

Recall the Application About Why International Trade May Reduce Measured