Empirical data suggest that during recessions, individuals reduce more of their consumption of
A) nondurable goods.
B) durable goods.
C) services.
D) necessities.

Question

Quizplus · Accepted Answer

During recessions, individuals tend to delay or avoid purchasing durable goods such as cars, appliances, and electronics, while still continuing to purchase necessities and services. This is because durable goods are expensive and require a significant investment, whereas necessities and services are typically essential for daily living.

Empirical Data Suggest That During Recessions, Individuals Reduce More of Their