Which of the following statements is correct?

A) The distribution of annual income accurately reflects the distribution of living standards.
B) Permanent incomes are more equally distributed than annual incomes.
C) Transitory changes in income generally have a significant impact on a family's standard of living.
D) Annual income is more equally distributed than permanent income.

Annual Income

Annual income is the total amount of money earned by an individual or entity within a year from all sources, including wages, salaries, bonuses, and investments.

Permanent Incomes

Refers to the average annual income an individual expects over their lifetime, considering various stages of their career and life.

Standard Of Living

A level of material comfort as measured by the goods, services, and luxuries available to an individual, group, or nation.