If national income is high but poverty persists, what additional question arises in macroeconomic study?
Answer and explanation
Correct answer: The question of income distribution and inclusive growth
A high national income is an aggregate measure and does not reveal how income is distributed among households. If most gains go to a small group, poverty may remain despite strong average income. Macroeconomic analysis must therefore examine inequality, poverty, access to opportunities and whether growth is inclusive.
Frequently asked questions
What is the correct answer to this question?
The question of income distribution and inclusive growth
Why is this the correct answer?
A high national income is an aggregate measure and does not reveal how income is distributed among households. If most gains go to a small group, poverty may remain despite strong average income. Macroeconomic analysis must therefore examine inequality, poverty, access to opportunities and whether growth is inclusive.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
