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5. The earned income tax credit (EITC) is an important part of the US. anti-poverty programs. Focused on the working poor, it provides a government

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5. The earned income tax credit (EITC) is an important part of the US. anti-poverty programs. Focused on the \"working poor,\" it provides a government transfer to low income families with positive labor income. In 1996, the EITC had the following provisions for a family with two or more children: 1 A famil earning less than $8890 received an EITC equal to 40% of the labor income it earned, Y yielding a government payment ranging from $0 to $3556; (2) A family earning between $8890 and $11,610 received an EITC of $3556; (3) A family earning more than $11,610 received an EITC of $3556 less 21.06% of any earnings above $11,610, yielding an EITC of $0 if labor income reached $28,495; (4) A family earning more than $28,495 received no EITC. The EITC has the same structure today, but with different threshold amounts. Show how the EITC affected the budget constraint for leisure and other goods for the family described above. Start by drawing a budget line for a family with wage rate w, and then show the new budget line with the EITC

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