The graph below shows the trade-off between economic output and inequality in an

Question

The graph below shows the trade-off between economic output and inequality in an economy.

The graph below shows the trade-off between eoonomic outpet and equalty in an economy The dowward soper ef the curve from pont C onmarcs indicales that: O increasing e qualty has a postive effect on economic D: Eqaalty is moru important than output o Incensing aqualily has a detfmental elect on DOuut is more important than equaity Increasing equaity has a detrimental eftect on What is the socially optimal level of utp? nt possible to tell hom this graph

Explanation / Answer

1) Increasing equality has detrimental effect on output.

2) Socially optimum output level should be between B and C. .

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