Figure 2.5.3
-An industry in which sales tend to magnify cyclical changes in gross domestic product and national income is called:
A) a cyclical industry.
B) a counter-cyclical industry.
C) a fluctuating industry.
D) a dismal industry.

Question

Figure 2.5.3
-An industry in which sales tend to magnify cyclical changes in gross domestic product and national income is called:
A) a cyclical industry. 
B) a counter-cyclical industry. 
C) a fluctuating industry. 
D) a dismal industry.

Quizplus · Accepted Answer

A cyclical industry is one that tends to experience greater sales during economic expansions and lower sales during recessions, thus reflecting the cyclical changes in GDP and national income.

Figure 2.5.3 -An Industry in Which Sales Tend to Magnify Cyclical Changes