Income equality and the Lorenz curve 1. The following income for Canada in year XX for unattached individuals. Prepare two Lorenz curves on the same graph, before and after income transfers to demonstrate the impact on the same graph. Population Lowest 20% Second 20% Third 20% Fourth 20% Fifth 20% Income Share 0.1 5.3 15.5 27.6 51.3 Income Share With Cumulative Income Transfer 0.1 5.4 20.9 48.5 99.8 5.8 10.5 15.8 24.7 43.3 Cumulative 5.8 16.3 31.6 56.3 99.6 2. What are some methods governments can use to change the level of inequality? What impact do government policies have on income distribution?