How does the HDI reflect income disparities?

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How does the HDI reflect income disparities?

The HDI reflects income disparities by taking into account not only the average income of a country but also the distribution of income among its population. It includes indicators such as life expectancy, education, and income, which are weighted equally in the calculation. Therefore, if a country has a high average income but a significant portion of its population has low income levels, the HDI will be lower, indicating income disparities within the country.