Census: Income Fell Sharply Last Year The U.S. Census Bureau reported that in 2008 the median household
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Census: Income Fell Sharply Last Year The U.S. Census Bureau reported that in 2008 the median household income fell 3.6%. The share of people living in poverty rose to 13.2% in 2008 from 12.5% in 2007. Only households led by people aged 65 or older enjoyed income gains—a 1.2% increase.
Source: USA Today, September 11, 2009
a. What does the information in this news report tell you about changes in the distribution of income in 2008?
b. What additional information would you need to know how the changes described changed the U.S. Lorenz curve?
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