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(a)A politician is proposing to eliminate the income-testing part of the pension program so that Moe would receive the full benefit regardless of how much

(a)A politician is proposing to eliminate the income-testing part of the pension program so that Moe would receive the full benefit regardless of how much she works. How would this influence her labour supply? Carefully explain using your diagram.

Assume leisure is a normal good.

(b)If Moe was married and her partner got sick, how do you think that would influence her decision to retire? Carefully explain (no diagram needed).

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