Here's why everyone's talking about a 'K

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By CHRISTOPHER RUGABER, AP Economics Writer

WASHINGTON (AP) — From corporate executives to Wall Street analysts to Federal Reserve officials, references to the “K-shaped economy” are rapidly proliferating.

So what does it mean? Simply put, the upper part of the K refers to higher-income Americans seeing their incomes and wealth rise while the bottom part points to lower-income households struggling with weaker income gains and steep prices.

A big reason the term is popping up so often is that it helps explain an unusually muddy and convoluted period for the U.S. economy. Growth appears solid , yet hiring is sluggish and the unemployment rate has ticked up . Overall consumer spending is still rising, but Americans are less confide