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Use a budget constraint to show the impact of job loss on a family’s consumption possibilities....

Use a budget constraint to show the impact of job loss on a family’s consumption possibilities. For simplicity, assume the household only consumes food and medicine. Food costs $50 and medicine costs $100. Before the job loss, the household had an income of $60,000. After the job loss the household income falls to $30,000. Briefly explain.

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