What is the effect of the poverty rate?

Reference no: EM13174494

Suppose the economy were very strong and unemployment very low. Wages after inflation rise for most Americans by about 3% and for highly skilled workers by 7%. The stock market soars and home prices rise dramatically. If all other things are equal, what is the likely effect on the poverty rate? On the distribution of income as measured by the quintile approach (more equal, less equal or unchanged)?

Reference no: EM13174494

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