Analyze the work incentives of the proposed change


Problem

The current UI program in the United States gives workers $X per day if they are unemployed but zero if they take a job for even 1 hour per day. Suppose that the law is changed so that UI beneficiaries can keep getting benefits of $X per day if they work 2 or fewer hours per day, but if they work more than 2 hours per day, their UI benefits end. Draw the old and new budget constraints (clearly labeled) associated with the UI program, and analyze the work incentives of this proposed change.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Analyze the work incentives of the proposed change
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