Explanation The income inequality represents the unequal distribution of income across various economic participants of the economy. When there is income inequality, the poor people of the economy will earn very small income, whereas the rich will earn very high level of income from the economy. When the income inequality is lower, the difference between the income earned by the poorest fifth and richest fifth will be the minimum...

The change in income earned by the richest fifth of the US economy.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN: 9781285165875

Author: N. Gregory Mankiw

Publisher: Cengage Learning

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Question

Chapter 20, Problem 2QR

To determine

The change in income earned by the richest fifth of the US economy.

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If a country had perfect income equality what would the Lorenz curve look like?

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