The Lorenz curves in the diagram illustrate how income and wealth are distributed differently. Income in a country is shared more evenly than wealth. Over a period, the distribution of income becomes less equal, but the distribution of wealth becomes more equal. Which movement would indicate the effects of these changes on the distribution of income and wealth within the country?
- Adistribution of income: shift from curve 1 to curve 2 / distribution of wealth: shift from curve 4 to curve 3
- Bdistribution of income: shift from curve 2 to curve 1 / distribution of wealth: shift from curve 3 to curve 4
- Cdistribution of income: shift from curve 3 to curve 4 / distribution of wealth: shift from curve 2 to curve 1
- Ddistribution of income: shift from curve 4 to curve 3 / distribution of wealth: shift from curve 1 to curve 2