Consider an income guarantee program with an income guarantess of $6000 and a benefit reductions rate of %50. A person can work up to 2000 hours per year $8 per hour.   a. Draw the person’s budget constraint with the income guarantee. b. Suppose that the income gurantee rises to $9000 but with a  75% reduction rate. Draw the new budget constraint. c. Which of these two income guarantee programs is more likely to discourage Work? Explain.

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