Q8. Please draw a change that raises the final incomes of the poorest households, but doesn't raise total spending Final income45°Original IncomeFigure 6: Welre policy diagramTowards the right of Figure 6 are two circular red markers with a line between themn thatyou can use to draw a line on Figure 6.You can move the markers with the mouse by clicking on them and dragging.Alternatively, you can tab to each marker and then use the keyboard arrow keys.In Figure 6 the solid blue line shows how a tax and benefit system translates originalincome into final income.Position the red markers, one on each vertical axis, on Figure 6 to show the effect of:A change that raises the final incomes of the poorest households, but doesn't raisetotal spending.( Previous pageNext paWPHILIPS

To raise the final income of the poorest without changing the spending, the new policy line must cut…

Answered: Please draw a change that raises the…

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Please draw a change that raises the final incomes of the poorest households, but doesn't raise total spending

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q8. Please draw a change that raises the final incomes of the poorest households, but doesn't raise total spending

Final income
45°
Original Income
Figure 6: Wel
re policy diagram
Towards the right of Figure 6 are two circular red markers with a line between themn that
you can use to draw a line on Figure 6.
You can move the markers with the mouse by clicking on them and dragging.
Alternatively, you can tab to each marker and then use the keyboard arrow keys.
In Figure 6 the solid blue line shows how a tax and benefit system translates original
income into final income.
Position the red markers, one on each vertical axis, on Figure 6 to show the effect of:
A change that raises the final incomes of the poorest households, but doesn't raise
total spending.
( Previous page
Next pa
W
PHILIPS

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