Durable goods industries and non-durables industries
Why does the business cycle influence output and employment in durable goods industries more strictly than in industries generating non-durables?
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Since durable goods last, consumers can postpone buying replacements. It happens while people are worried regarding a recession & whether there will be a paycheque next month. And firms will soon end generating what people are not buying. Therefore durable goods industries suffer large output declines at the time of recessions. On the contrary, consumers cannot long postpone the buying of non-durables such as food; thus recessions only slightly reduce nondurable output.
Transfers: As employed in Schedule 10Rs and fund situation statements, transfers replicate the movement of resources from one fund to the other based on statutory authorization or particular legislative transfer appropriation authority.
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