President Joe Nositall just published a report for his country, laying out various scenarios for the economy in the next year. Table 21P-5 shows his report, with various levels of GDP growth, income equality, and tax rates.
a. Rank the scenarios from the most equal to the most unequal income distribution (defined as the average income of the top decile of earners divided by the average income of the bottom decile of earners).
b. Rank each scenario in terms of the level of GDP growth between 2010 and 2011.
c. Between which scenarios is there no trade-off between GDP growth and income equality?