Question: 1 . Social Insurance ( please explain the math ) a ) [ 6 points ] Suppose an individual was earning ( $
Social Insurance please explain the math
a points Suppose an individual was earning $ a week and then becomes unemployed. The individual then has no labor market earnings but can borrow from family and friends. Suppose that the UI system provides $ a week in benefits. The table below summarizes the individual's situation. X and Y are unknown variables.
i What are X and Y if UI benefits don't affect borrowing from family and friends no crowd outii What are X and Y if individuals stop borrowing by $ from family and friends for each dollar of UI benefits full crowd outiii What are X and Y if individuals reduce their borrowing from family and friends by for each dollar of benefits partial crowd out You should provide numerical answers
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