Question: Now suppose you have the same problem as in Problem (1), but if a worker loses their job they can expect to receive an unemployment
Now suppose you have the same problem as in Problem (1), but if a worker loses their job they can expect to receive an unemployment ben- efits equivalent to receiving a wage of 2 (in other words, if unemployed, a worker's utility would be 2, not zero). Comment on the relationship between unemployment benefits and the wages received in periods 1, 2, and 3. At period 1, wage is 5.2 and utility is 1.2. At period 2, wage is 5.2 and the utility is 1.2. At period 3, wage is 10 and the utility is 6
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