Economist Dr. James Wong argues that inequality reduces economic growth because it limits consumer spending from the majority who have less purchasing power.
2
readingWhich economic data would best support Wong's mechanism claim?
A
Wealthy individuals save more
B
Countries with higher inequality showed 20% lower consumer spending as share of GDP and 1.5% slower annual growth, with statistical models confirming spending as the causal pathway
C
Some countries are more unequal
D
Economic theories differ on inequality
Correct Answer: B
Choice B is the best answer. Lower spending + slower growth + confirmed mechanism proves the causal chain.
💡 Strategy: Mechanism claims need evidence of both the pathway and the outcome.