The K Curve depicts the inequality existing between different financial entities in terms of their attributes that determine their future growth and profitability.
A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.
A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession.
This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter "K."
How does the curve get changed?
Widening of the arms of the ‘K’ would imply that the inequality is increasing, while narrowing of the span of the ‘K’ would mean the opposite.
