Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?

could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative

exaggerate the inequality of living standards

understate the inequality of living standards

accurately represent the true inequality of living standards

Because people’s income vary other the life cycle and because there

1.	Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?
A.	exaggerate the inequality of living standards
B.	could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative
C.	understate the inequality of living standards
D.	accurately represent the true inequality of living standards
Answer» B. could exaggerate or understate the inequality of living standards depending on whether the transitory shocks are positive or negative

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Because people’s income vary other the life cycle and because there are transitory shocks to people’s incomes the standard measures of income distribution ?

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