In roughly the last three decades, the traditional measures of income inequality (such as the Gini coefficient) have shown that the degree of inequality in the United States has __________. However, if it were the case over that time period that the prices of goods primarily consumed by high-income individuals have increased more rapidly than the prices of goods primarily consumed by low-income individuals, then "real income"
Inequality in the United States over that same time period would likely have been _________ than suggested by the traditional measures.
A) decreased; decreased to a lesser extent
B) decreased; decreased to an even greater extent
C) increased; increased to a lesser extent
D) increased; increased to an even greater extent

Question

Quizplus · Accepted Answer

Traditional measures show increased inequality, but if high-income goods' prices rose faster, real income inequality would be less severe than these measures suggest.

In Roughly the Last Three Decades, the Traditional Measures of Income