--%>

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?

 

E

Expert

Verified

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.

   Related Questions in Finance Basics

  • Q : Determine per unit cost of production

    Normal 0 false false

  • Q : Pitfalls when two companies merge Other

    Other than pricing, some pitfalls that consumers might have to deal with when two major companies merge.

  • Q : Define Subcommittee Subcommittee : The

    Subcommittee: The smaller groupings into which the Senate or Assembly committees are frequently divided. For illustration, the fiscal committees which hear the Budget Bill are classified into subcommittees usually by departments or subject area (examp

  • Q : Formula for the payment required for a

    Normal 0 false false

  • Q : Define Subventions Subventions :

    Subventions: Typically employed to explain amounts of money expended as local assistance based on the formula, in contrast to grants which are provided selectively and frequently on a competitive basis. For the aim of Article XIII B, state subventions

  • Q : Assignments i want to write final state

    i want to write final state report. My state is Texas. You can use the resources that i attached, also you can use another resources to cover the outlines.

  • Q : Define Special Funds Special Funds :

    Special Funds: For legal base budgeting purposes, funds produced by statute, or administratively per Government Code Section 13306, employed to budget and account for taxes, licenses, and fees which are restricted by law for specific activities of the

  • Q : Define operating leverage effect and

    Define operating leverage effect and what causes it? Describe potential benefits and negative consequences of high operating leverage? The operating leverage effect is the phenomenon where a small change in sales triggers a comparatively large

  • Q : Explain Language Sheets Language Sheets

    Language Sheets: The copies of the current Budget Act appropriation items offered to Finance and departmental staff each fall to update for the proposed Governor’s Budget. Such updated language sheets become the proposed Budget Bill. In spring,

  • Q : Describe inventory is sometimes thought

    Inventory is sometimes thought of as an essential evil. Describe. Inventory ties up funds and these are not earning an explicit return. Some inventory is frequently necessary, however, as companies attempt to hold the lowest acceptable amount.