Industries that are extremely sensitive to the business cycle are the
A)durable goods and service sectors.
B)nondurable goods and service sectors.
C)capital goods and nondurable goods sectors.
D)capital goods and durable goods sectors.

Question

Quizplus · Accepted Answer

Capital goods and durable goods sectors are highly sensitive to the business cycle because their demand often fluctuates significantly with economic conditions. During economic downturns, businesses and consumers are less likely to invest in these items, leading to greater sensitivity to the cycle.

Industries That Are Extremely Sensitive to the Business Cycle Are