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The U.S. Earned Income Tax Credit (EITC) has been described as one of the most successful elements of U.S. antipoverty public policy, especially as it

The U.S. Earned Income Tax Credit (EITC) has been described as one of the most successful elements of U.S. antipoverty public policy, especially as it directs benefits towards the poor. Low-wage workers receive additional income (through a tax credit) from the federal government, depending on how much they earn each year. Consider these program features that define an individual worker's eligibility:

i) There is no tax credit if no labour market income is earned.

ii) Phase-in range: the tax credit equals $0.35 per dollar earned, and peaks at $3000, when the worker earns $9000.

iii) Flat range: the tax credit remains at $3000 until the worker earns around $16,500.

iv) Phase-out range: the tax credit is phased out gradually, by $0.15 per dollar earned, until eliminated completely if the worker earns $35,500 or more per year.

Part (a). Assuming the worker does not receive any non-labour market income, graph the budget constraint associated with the EITC for a typical worker earning W per hour.

I am unsure how to graph this, could you please explain?

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