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, prices for the nondurable goods purchased by the poor have ________ the prices of nondurable goods purchased by the rich.
A) increased more than
B) increased less than
C) increased at the same rate as
D) decreased at the same rate as
Correct Answer:
Verified
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A)
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