Income growth in top 60% widens relative gaps without shifting absolute thresholds

Steps:

• Absolute poverty measures income below a fixed threshold (e.g., $2.15/day); bottom 40% incomes unchanged, so their status remains constant.
• Relative poverty measures income below a fraction of median income (e.g., 50-60%); top 60% income rise increases overall median.
• Higher median raises the relative poverty line, pushing more of bottom 40% below it despite static incomes.
• Result: absolute poverty constant, relative poverty increases.

Why C is correct:

• Absolute poverty unchanged as fixed threshold unaffected by top incomes; relative poverty rises per definition tied to shifting median (e.g., 60% of median formula).

Why the others are wrong:

• A: Absolute poverty did not increase, as bottom incomes static.
• B: Relative poverty increased due to median shift, not constant.
• D: Relative poverty increased from higher median, not constant.

Final answer: C