Why high levels of inequality lead to lower rates of growth


Problem

Why might high levels of inequality lead to lower rates of growth and development? Why might it be difficult to get out of this kind of trap? Why is the government sometimes a part of the problem of coordination failure rather than the solution? Does this make the problem hopeless? What could be done in this case?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why high levels of inequality lead to lower rates of growth
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