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Jane works part-time and earns $12,000 per year. Because she is below the poverty line, she also earns $4,000 in various welfare benefits. Suppose she is offered a new job that would pay her $15,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits. This is what is known as a "notch". describe what is happening with Jane and how could we modify the system to eliminate the notch.

Microeconomics, Economics

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