Recall Application 2, "Growth Need Not Cause Increased Inequality," to answer the following questions:
-According to the application, Kuznets' theory states that as a country develops:
A) income inequality initially increases and then narrows over time.
B) income inequality decreases faster early on than later in time.
C) pollution initially increases and then narrows over time.
D) differences in wages and salaries decrease.
Correct Answer:
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