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economics
Date Submitted: 02/13/2004 18:05:04
Length: 4 pages (1197 words)
Views: 142165
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…others income. Due to this inequality it will be hard for the economy to grow. The poor will be limited to only buying necessities. The government could redistribute the incomes, by taxing the very few, extremely rich extensively. This would push more money into the circular flow. The poor could purchase goods and as a result this would become the income of others. The industry would then increase output due to the increase in demand.
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