Lorenz Curve 100- 90- 80- 70 60- 50- 40- 30 20- 10 0- 6 10 20 30 40 50 60 70 80 90 100 7. Total personal income in the U

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Lorenz Curve 100 90 80 70 60 50 40 30 20 10 0 6 10 20 30 40 50 60 70 80 90 100 7 Total Personal Income In The U 1 (49.11 KiB) Viewed 34 times

Lorenz Curve 100- 90- 80- 70 60- 50- 40- 30 20- 10 0- 6 10 20 30 40 50 60 70 80 90 100 7. Total personal income in the United States totaled S20 Trillion in 2020. The breakdown was as follows: (15 points) Bottom 20% of population earned S1 Trillion Next 20% of the population carned $2 Trillion Next 20% of the population earned $3 Trillion Next 20% of the population earned S4 Trillion Top 20% of the population earned $10 Trillion a. Draw a Lorenz Curve assuming perfect equality, that is: Bottom 20% of population camned 4 Trillion Next 20% of the population camed $4 Trillion Next 20% of the population earned $4 Trillion Next 20% of the population earned $4 Trillion Top 20% of the population earned S4 Trillion Label this curve A b. Next draw a Lorenz curve assuming the distribution presented at the beginning of this question. Label this curve B c. Now assume Congress passes a tax on the top 20% and reduces the income of the top 20% by $4 Trillion and increasing the income of the each of the lower groups by S1 Trillion each, so the bottom 20% has $2 Trillion, the next 20% has $3 Trillion etc. Draw a new Lorenz curve and label this curve C. You will need to do some calculations. Draw all three curves on the SAME grid.