In which of the following industries or sectors of the economy is output likely to be most strongly affected by the business cycle?
A)military goods
B)durable goods (machinery, equipment, etc.)
C)textile products (clothing)
D)agricultural commodities (wheat, corn, etc.)

Question

Quizplus · Accepted Answer

Durable goods, such as machinery and equipment, are typically more expensive and require significant investment. Therefore, demand for these goods is more sensitive to the overall health of the economy, and output is likely to be most strongly affected by the business cycle.

In Which of the Following Industries or Sectors of the Economy