Jiro and his wife Mariko are both employed. When Jiro loses his job, what happens to the household's budget line?

Name: Jiro and his wife Mariko are both employed. When Jiro loses his job, what happens to the household's budget line?
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Question

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When Jiro loses his job, the household's total income decreases, leading to a reduction in their ability to purchase goods and services. This results in the budget line shifting inward, indicating a lower level of consumption that the household can now afford.

Jiro and His Wife Mariko Are Both Employed