Question 7 (5 points) The current Unemployment Insurance (UI) program in the U.S. gives workers $X per day if they are unemployed, but zero if they take a job for even one hour per day. Suppose that the law is changed so that they can receive benefits of $X per day in addition to their wages if they work 3 or fewer hours per day and benefits of S2X if they work a 4" and 5th hour. However, if they work more than 5 hours per day they receive no benefits from UI program. Draw the OLD AND NEW budget constraints (clearly labeled) associated with UI program and briefly analyze the work incentives of this proposed change. (As we did in class, assume the individual has a total of 16 hours to allocate) Question 7 (5 points) The current Unemployment Insurance (UI) program in the U.S. gives workers $X per day if they are unemployed, but zero if they take a job for even one hour per day. Suppose that the law is changed so that they can receive benefits of $X per day in addition to their wages if they work 3 or fewer hours per day and benefits of S2X if they work a 4" and 5th hour. However, if they work more than 5 hours per day they receive no benefits from UI program. Draw the OLD AND NEW budget constraints (clearly labeled) associated with UI program and briefly analyze the work incentives of this proposed change. (As we did in class, assume the individual has a total of 16 hours to allocate)