Question

Incomes rise for low-income and high-income workers, but rise more for the high-income earners. How will this change affect income inequality

Answer 1

It will increase the income inequality between the low income earners and the high income earners.

Explanation: Income inequality is a term used to describe the Difference or gap between income earners within a given economy. If the rate of increase of income is higher for the low income earners than for the high income earners it will help to reduce the inequality gaps between both classes. But when the rise is more for high income earners than for low income earners it will increase the inequality gaps between both classes.