Question

Could higher economic growth cause greater income inequality in the near term but generate a movement toward greater income equality in the long run? Explain your reasoning.

Short answer

Higher economic growth causes greater income inequality in the near term but generates a movement toward greater income equality in the long run

Step-by-step solution

Introduction 

Inequality is associated with economic growth and the country with less variety and a higher working-class size has more steady growth. Some financial analyst investigations suggest that in the short run, inequality can motivate growth in the event that it doesn't turn into a hindrance throughout the more drawn-out timeframe.

Explanation

Subsequently, the connections exist among the economic growth and inequality centers that start with an incredible degree of economic growth bringing about developing inequality however in longer timeframes, higher growth of the economy leads to positive outcomes for a country. Along these lines, we are continuing on the instruments where inequality influences well on the economic growth of a country throughout some stretch of time.