economics hard Fill in the Blank

The ___ Curve hypothesizes an inverted-U shaped relationship between income inequality and economic development.

  1. Lewis
  2. trust (or confidence / faith)
  3. Engel's
  4. Kuznets

Answer: Kuznets

Simon Kuznets theorized that as an economy develops from agrarian to industrial, inequality initially rises as people move to higher-paying urban jobs. However, as the economy matures and welfare mechanisms, education, and democratization spread, inequality eventually decreases.

Topic Macroeconomics - Curves
Exam Relevance UPSC Prelims, SSC CGL
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