Eilc is the name of the reading

EITC's Effect on Labor Supply The EITC unambiguously raises the labor supply of those not working (such as person A, who moves to point A1 ); has an ambiguous effect on the labor supply of those with low earnings, who receive the wage subsidy (such as person B, who may move to either point B1 or point B2 ); reduces the labor supply of those on the flat maximum subsidy (such as person C, who moves to point C1 l; and reduces the labor supply of those on the phase-out portion (such as person D, who moves to point D1 ). Note that the figure is not to scale. 4.1.1 EITC Figure 21-6 in the EITC reading shows the budget constraint for the 4 zones in the EITC. For each one, graph the income and substitution effects. It may help if you use 4 different axes, each one with a "zoomed in" version of the budget constraint so that you have enough room to graph the IE \& SE. evea if the family owes na echer casek, in can seili qualify for this cretic, went the gorernment will aend che family a check for the ameant a i wa * tebace. Impact of EITC on Labor Supplyt Theory the IITC ce four durind goverw: 1. For people not in the blot foece at all, wuch at periot A, the IIITC witt wisce they sant with no laber incoine. The ETrC doen hew a makinsbabet forch muninc to prear idi. 4.1.1 EITC Figure 21-6 in the EITC reading shows the budget constraint for the 4 zones in the EITC. For each one, graph the income and substitution effects. It may help if you use 4 different axes, each one with a "zoomed in" version of the budget constraint so that you have enough room to graph the IE \& SE. EITC's Effect on Labor Supply The EITC unambiguously raises the labor supply of those not working (such as person A, who moves to point A1 ); has an ambiguous effect on the labor supply of those with low earnings, who receive the wage subsidy (such as person B, who may move to either point B1 or point B2 ); reduces the labor supply of those on the flat maximum subsidy (such as person C, who moves to point C1 l; and reduces the labor supply of those on the phase-out portion (such as person D, who moves to point D1 ). Note that the figure is not to scale. 4.1.1 EITC Figure 21-6 in the EITC reading shows the budget constraint for the 4 zones in the EITC. For each one, graph the income and substitution effects. It may help if you use 4 different axes, each one with a "zoomed in" version of the budget constraint so that you have enough room to graph the IE \& SE. evea if the family owes na echer casek, in can seili qualify for this cretic, went the gorernment will aend che family a check for the ameant a i wa * tebace. Impact of EITC on Labor Supplyt Theory the IITC ce four durind goverw: 1. For people not in the blot foece at all, wuch at periot A, the IIITC witt wisce they sant with no laber incoine. The ETrC doen hew a makinsbabet forch muninc to prear idi. 4.1.1 EITC Figure 21-6 in the EITC reading shows the budget constraint for the 4 zones in the EITC. For each one, graph the income and substitution effects. It may help if you use 4 different axes, each one with a "zoomed in" version of the budget constraint so that you have enough room to graph the IE \& SE