3 Income Distribution exercise The following table shows income distribution data for an economy in 1977 and 1999 Plot the Lorenz curves for the economy in 1977 and 1999 in a single diagram use Excel What do these curves indicate about how income distribution has changed in the US over the past two decades Calculate the Gini index for the two years Household Group One fifth with lowest income Next lowest one fifth Middle one fifth Next highest one fifth One fifth with highest income Share of Aggregate Income 1977 1999 4 8 6 2 18 7 25 6 44 7 2 5 5 3 17 1 21 8 53 3