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When are the benefits of GDP growth more likely to reach everyone?

Answer and explanation

Correct answer: When income distribution is more equal

GDP growth raises the value of output, but its benefits are not automatically shared equally. When income distribution is more equal, a larger proportion of households can obtain additional goods, services, education, and health care. Thus option C best explains broad-based welfare gains. Rising unemployment, pollution, or declining education would generally weaken the social benefit of growth.

Related tags

Income DistributionGdp GrowthEconomic WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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