--%>

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 : Demand for French euros or a supply of

    Normal 0 false false

  • Q : How does preemptive right secure

    How does a preemptive right secure the interests of present stockholders? A preemptive right secure the interests of existing stockholders through giving them the chance to preempt other investors into the purchase of new shares. If these right

  • Q : Define Accrual Basis of Accounting

    Accrual Basis of Accounting: The foundation of accounting in which transactions are identified whenever they take place, regardless of when cash is disbursed or received. The revenue is recorded whenever earned, and expenses are recor

  • Q : Shapes of marginal-cost and the

    Normal 0 false false

  • Q : Describe annuity Normal 0 false false

    Normal 0 false false

  • Q : Define the term floor Floor: The

    Floor: The Assembly or Senate chambers or the word employed to explain the location of a bill or the kind of session. Matters might be termed to as “on the floor”.

  • Q : What is FERA FERA stands for The

    FERA stands for The Federal Emergency Relief Administration. The program was renamed as a direct relief operation in Roosevelt Administration. It was a form of an unemployment insurance.

  • Q : Define Organization Code Organization

    Organization Code: The four-digit code allotted to each state governmental entity (and at times to exclusive budgetary programs) for fiscal system aims. The organization code is the initial segment of the budget item or appropriation

  • Q : Analysis on Financial Manangement

    Questions 1: (1) Your coin collection contains 40 1957 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2040, assuming they appreciate at a 10 percent annual rate? <

  • Q : What are Federal Funds Federal Funds :

    Federal Funds: For legal basis budgeting purposes, categorization of funds into which the money received in trust from an agency of the federal government will be deposited and finished by a state department in accordance with state and/or federal rul