Below are two households. Even though the overall economy grows 5% from year 1 to year 2, household 1 takes a big hit: its income drops by nearly 50%.
Income distribution started off at equality. (a) Did unfair economic policy cause the huge disparity in income distribution between the two households in year 2? (b) Which is more indicative of the fairness of the "sharing" of economic growth: household income, or income per earner?
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