Q. Which one of the following best describes the impact of a K-shaped recovery on economic inequality?
Red Book
Red Book

[A] It reduces economic inequality by ensuring uniform growth across all sectors.

[B] It stabilizes economic inequality by balancing growth between the public and private sectors.

[C] It increases economic inequality by creating divergent recovery paths for different sectors.

[D] It temporarily shifts economic inequality before returning to pre-recovery levels.

Answer: C
Notes:

Explanation – A K-shaped recovery increases economic inequality by causing uneven growth across sectors and groups. While some sectors, like tech and remote work, thrive, others, such as hospitality and low-wage jobs, struggle. This leads to a growing gap between the wealthy and the less affluent.

Source: The Hindu

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