2. Before 1996, in the U.S. the largest income maintenance program was Aid to Families with Dependant Children [AFDC]. The entitlement program, nanced with Federal and States funds, targeted single parents and their children. Under the program, parents with no income were given a monthly money grant of G. For working parents, the grant was reduced dollar per dollar for each dollar of earnings. a) In a Y/N diagram, draw the budget line of a single parent who could work at an hourly wage rate of $10 b) In the same diagram, show the effect of the AFDC program on this parent's opportunity set if G = $560. c] In the diagram, show how the AFDC program affects the labor supply of a full time worker [i.e. an individual who works 160 hours each month). Is this type of worker likely to take-up AFDC? d] In the diagram, show how the AFDC program affects the labor supply of a part time worker [i.e. an individual who works 80 hours each month]. Is this worker likely to take-up AFDC? After taking-up AFDC, will this worker likely drop out of the labor force? 9) Suppose the welfare grant was reduced by 50cents for each dollar of earnings. What is the likely effect on the size of the labor force? What is the likely effect on welfare take-up