5. Individuals in a town have utility function u(c) = ve, where e is an individual's weekly consumption. Their current weekly income is $1000 while working. All individuals face the same 10% probability of being laid off, in which case they will have no income. Or equivalently, everyone has 90% probability to be able to continue to work. The town's government is considering providing some social unemployment insurance. In particular, each unemployed would be paid the same weekly benefit b, financed by lump-sum tax r on the people who keep their job. a) What is current expected utility of an individual when there is no unemployment insurance? (b) Write down the government's constraint for a balanced budget. Express the lump-sum tax + as a function of b. (c) One proposal is by = $180. What would be the corresponding budget balancing tax 71 according you result in (b)? What would the expected utility of an individual if (b1, 71) is implemented