Using the above Lorenz Curve, if Economy A decreased the progressivity of income taxes, then Economy A's Lorenz Curve would A shift closer to the 45-degree reference line. B shift closer to Economy B's Lorenz Curve. not shift at all.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Using the above Lorenz Curve, if Economy A decreased the progressivity of income taxes, then Economy A's
Lorenz Curve would
A shift closer to the 45-degree reference line.
B
shift closer to Economy B's Lorenz Curve.
not shift at all.
Transcribed Image Text:Using the above Lorenz Curve, if Economy A decreased the progressivity of income taxes, then Economy A's Lorenz Curve would A shift closer to the 45-degree reference line. B shift closer to Economy B's Lorenz Curve. not shift at all.
Total Income (cumulativo parcontags)
100
80
9
23.
BO
Total Population (cumulative percentage
20
09
C
7:00
Transcribed Image Text:Total Income (cumulativo parcontags) 100 80 9 23. BO Total Population (cumulative percentage 20 09 C 7:00
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