Key Idea: Topic 3.4 distinguishes absolute vs relative poverty, introduces composite indicators (HDI, MPI), and explains how inequality persists and what policies can address it.
✅ Core definitions
A country can reduce absolute poverty while relative poverty widens — if the rich grow faster than the poor.
📊 Single vs composite indicators
📈 Lorenz curve and Gini in the macro context
🔧 Causes of inequality and poverty
Always link: cause → mechanism → outcome. Example: low education access → lower human capital → lower wages → persistent poverty.