Generally speaking, output and employment are more variable over the business cycle in capital goods and consumer durable industries than they are in service and nondurable consumer goods sector.

Question

Quizplus · Accepted Answer

Capital goods and consumer durable industries are more sensitive to changes in business investment and consumer spending, which fluctuate more over the business cycle, leading to higher variability in output and employment. On the other hand, the service and nondurable consumer goods sector are less cyclical and tend to experience more stable demand and employment patterns.

Generally Speaking, Output and Employment Are More Variable Over the Business