Question: Explain how the EITC affected the amount of labor supplied by this family if in the absence of the EITC it would a. supply no

Explain how the EITC affected the amount of labor supplied by this family if in the absence of the EITC it would a. supply no labor. b. work but earn less than $8890. c. earn between $8890 and $11,610. d. earn between $11,610 and $28,495. e. earn more than $28,495. You may assume that leisure is a normal good and that the family's preferences can be described by an indifference map of the usual shape. [After working out your own answers, you may consult Eissa & Liebman, \"Labor Supply Response to the Earned Income Tax Credit\" to check your graph and reasoning]

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