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

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The Callaway family's permanent income likely exceeds their transitory income because the recession is a temporary event that will not permanently affect their income. In the long-term, the bait and tackle shop will likely continue to generate income, and the family's permanent income will not be greatly affected by the one summer of reduced tourism.

The Callaway Family Owns a Small Bait and Tackle Shop