Which statement is correct?
A)All sectors of the economy are affected to similar degrees by business fluctuations.
B)Real output and employment generally show little variance over the business cycle.
C)The production of nondurable consumer goods is more stable than the production of durable consumer goods over the business cycle.
D)Recessions have not been severe because economists and statisticians have been able to predict their occurrence and intensity with high accuracy.

Question

Quizplus · Accepted Answer

The production of nondurable consumer goods is more stable than the production of durable consumer goods over the business cycle because nondurable goods are necessities that consumers continue to purchase even during economic downturns, whereas durable goods purchases can often be postponed.

Which Statement Is Correct