Question

Figures about the American Economy show that:

• A. The New Deal is responsible for the decline in US economy.
• B. Income differences between American people have become as much as the 1920s.
• C. A drastic narrowing of income differences has occurred.
• D. None of the Above.

Hint:

In reading comprehension, pay attention to specific terms and phrases that directly describe economic changes or conditions. In this case, terms like "income gaps" and "Gilded Age" provide clues to the correct answer.

Answer 1

The Correct Option is B

Step 1: Understanding the passage.
The passage discusses the changes in the American economy and income distribution. It mentions that during the 1930s and '40s, income gaps were smaller, but later, income inequalities increased again, approaching the levels of the 1920s.
Step 2: Analyzing the options.
- (a) The New Deal is responsible for the decline in the US economy: This is incorrect, as the passage does not mention the New Deal causing a decline but rather explains the New Deal’s role in reducing income gaps.
- (b) Income differences between American people have become as much as the 1920s: Correct, as the passage explicitly states that the distribution of income has reverted to Gilded Age levels, similar to the 1920s.
- (c) A drastic narrowing of income differences has occurred: This is incorrect because the passage highlights that while income differences were smaller in the past, they have widened again.
- (d) None of the Above: This is incorrect because option (b) is the correct answer.
Step 3: Conclusion.
The correct answer is (b) because the passage indicates that income differences have increased again, reaching the levels of the 1920s.