-The figure above illustrates a "spiked" budget constraint attendant to income replacement programs such as workers' compensation and unemployment insurance.Assume that,prior to injury or unemployment,the worker earns $E? per time period,works H₀= A - L₀ hours,and enjoys utility level U₁.In order to minimize the work disincentives associated with income replacement while maintaining the worker near the original level of utility,the program ought to pay a benefit

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The Answer of -The figure above illustrates a "spiked" budget constraint attendant to income replacement programs such as workers' compensation and unemployment insurance.Assume that,prior to injury or unemployment,the worker earns $E? per time period,works H₀= A - L₀ hours,and enjoys utility level U₁.In order to minimize the work disincentives associated with income replacement while maintaining the worker near the original level of utility,the program ought to pay a benefit

-The Figure Above Illustrates a "Spiked" Budget Constraint Attendant to Income