Question

1. which of the following is true regarding austerity?

a. higher austerity often is correlated with higher inequality

b. it usually involves politicians passing spending increases for special interest groups and powerful lobbing interests

c. people justify austerity based on the grounds of it being a way to slo inflation

d. all of the answers listed

2. what is the trend in the pre-tax income of the bottom 50% of adults since 1980?

a. increasing for blacks, decreasing for whites

b. increasing

c. stagnating

3, although there are still large achievement gaps between white and black students, the gap in upward mobility between whites and blacks is declining

a. true

b. false

Answer 1

1> higher austerity often is correlated with higher inequality

Since austerity measures are to reduce the government deficit, this requires higher taxing or publicly unpopular policies, These generally lead to more inequality since poors are charger higher in terms of their share.

2> a increasing for blacks, decreasing for whites

Although in the US, the bottom 50% of adults have a lower income share now than before, the income of the black has marginally improved.

3> True

There is a gap between white and black students in terms of average achievement. But, the way to upward mobility has got easier over time and the gap is declining across race.