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modify answer to fit Suppose that the government introduces an Earned Income Tax Credit such that for the first $8,000 in earnings, the government pays
modify answer to fit Suppose that the government introduces an Earned Income Tax Credit such that for the first $8,000 in earnings, the government pays 50 per dollar on wages earned. For the next $3,000 of earnings, the credit is held constant at $4,000, and after that point the credit is reduced at a rate of 20 per dollar earned. When the credit reaches zero, there is no additional EITC. a) whats the the budget constraint that reflects this earned income tax credit for a worker who can work up to 4,000 hours per year at an hourly wage of $20 per hour. total consumption $80,000 Mark all intercepts, kink points, and slopes
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