The Callaway family owns a small bait and tackle shop in a resort town in Wisconsin. An economic recession reduces the number of tourists for one summer, which reduces the family's income for that year. For the Callaway family, their
a. transitory income for the year of the recession likely exceeds their permanent income.
b. permanent income likely exceeds their transitory income for the year of the recession.
c. permanent income will be more affected by the recession than their transitory income.
d. Both a and c are correct.
b
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The above table shows the total product schedule for the campus book store. If employees are paid $6 per hour and there are no other variable costs, then what is the marginal cost (MC) per book of increasing book sales from 83 to 87 books per hour?
A) $6.00 B) $4.00 C) $2.07 D) $1.50
The LM curve automatically shifts to the right when the intersection point of the IS and LM curves occurs at a point
A) beyond full-employment income. B) in the liquidity trap. C) less than full-employment income. D) where planned saving is less than planned investment.