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Recent Data Suggests That the Kuznets Hypothesis Must Be Modified

Question 21

Multiple Choice

Recent data suggests that the Kuznets hypothesis must be modified in the following way: Inequality of wealth and income increases during the early phases of economic growth when the transition from pre-industrial to industrial society is most rapid, stabilizes for awhile,


A) decreases in the later phases of industrialization.
B) and then becomes subject to political negotiation.
C) becomes erratic, responding to rapid shifts in the economy.
D) increases in the later phases of industrialization.
E) retroactively affects the wealthy.

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