Question

A family's ability to buy goods and services depends largely on its permanent income, which is its normal, or average, income. permanent income, which is the lowest annual income the family has received over a 10-year period. transitory income, which is the measure of income used by the government to analyze the distribution of income and the poverty rate. transitory income, which is its money income plus any in-kind transfers it receives.

Answer 1

The permanent income is the factor most needed to understand how much can be bought. This figure gives a relative basis for figuring out the average amount of goods and services a person can purchase over a given time frame. The larger the permanent income, the larger the basket of goods and services available to them.