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2. Income distribution in a certain economy is given by a cumulative probability distribution F. Suppose a policy is enacted such that the new distribution
2. Income distribution in a certain economy is given by a cumulative probability distribution F. Suppose a policy is enacted such that the new distribution of income is given by G. It was then seen that the mean of the log of income went up. That is, /log(a:)g(x)dx > /log(:v)f(:r)dx. a. The above inequality shows that Average Poverty Gap has fallen. b. The above inequality shows that Average Poverty Gap must rise. c. Not enough information to conclude either of the above
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