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.