Why is the output of investment goods and durable consumer goods more sensitive to the business cycle

Question:

Why is the output of investment goods and durable consumer goods more sensitive to the business cycle than that of most goods?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

See More Books

Question Posted: Jan 19, 2023 03:57 AM

See More Questions

Why is the output at which marginal revenue equals marginal cost the maximum profit position?
The table below is the output of polytomous (multinomial) logistic regression of clinical classification on insulin response (IR), steady-state plasma glucose (SSPG), and relative weight (RW). The...
Why is the output of a JIT system likely to contain fewer defective units than the output of a traditional manufacturing system?
Record your responses on the spreadsheet template. 2014 February 1 - Brady and Manning decide to start up a partnership. Brady brings in $10 000 cash and equipment costing $60 000, with $17 000 in...
A sociologist was hired by a large city hospital to investigate the relationship between the number of unauthorized days that employees are absent per year and the distance (miles) between home and...
A7X Corp. just paid a dividend of $1.55 per share. The dividends are expected to grow at 21 percent for the next eight years and then level off to a growth rate of 3.5 percent indefinitely. If the...
Two vertical parallel rails made of material that is an electrical conductor are $80.0 \mathrm{~mm}$ apart (Figure P27.29). A wire $80.0 \mathrm{~mm}$ long is free to slide along the rails, which...
The balance sheets of Hutter Amalgamated are shown below. If the 12/31/2004 value of operations is $756 million, what is the 12/31/2004 value of equity? Balance Sheets, December 31, 2004 (Millions of...
(a) An investor purchased 300 units of a Mutual Fund at Rs. 12.25 per unit on 31 December, 2009. As on 31st December, 2010 he has received Rs. 1.25 as dividend and Rs. 1.00 as capital gains...
If employment and unemployment rates both rose at the same time, what would you do to determine what was happening in the labor market?
Inflation can harm ______. a. Retirees on fixed pensions b. Borrowers who have long-term fixed interest-rate loans c. Wage earners whose incomes grow slower than inflation d. Either retirees on fixed...
What is the primary classification of costs under absorption costing?
A researcher wishes to determine the width of a vernal pond as drawn below. From a point P, he finds the distance to the western-most point of the pond to be 800 feet, while the distance to the...
Assume again that currently East Coast Yachts operates at full capacity and next year plans to grow at the sustainable growth rate you calculated in 2. However, net plant and equipment cannot...
How can households, who need to invest their excess funds, reduce their risk?
Discuss the general principles / ideas that involve the measurement and management of translation / accounting exposure.
In March 1868, an entrepreneur issued $1000 bonds (to pay for an access road in the city). The bonds carried a 6% annual interest rate payable semiannually. The entrepreneur paid the interest until...
(a) Prepare a memo to the partner making a recommendation as to whether Barnes and Fischer should or should not accept Ocean Manufacturing, Inc. as an audit client. Carefully justify your position in...
The company manufactures three products: wooden chairs, tables and dressers. AFC started off as a 'Mom & Pop' shop but has grown rapidly. AFC uses one assembly line to build all three products,...
Economists usually assume that consumers wish to maximise their total consumer surplus. They also often assume that societys aims are to maximise the surplus of total social benefits over total...
1. If consumers were not rational, could indifference curves slope upwards to the right? 2. When you buy goods, do you ever later regret your choice of purchases? If so, does this mean that your...
These arguments would seem to suggest that VAT levied at the same rate on all goods is preferable to selective taxes at higher rates on such items as alcohol, tobacco and gambling. Are there any...
List 2 QuickBooks features that allow you to save time. How do they assist you in saving time?please explain .
Ball (2009) discusses the recent accounting scandals and how important our accounting system is to financial markets. What is the economic role of financial reporting? Why is our understanding of...
Connect to the "Sample - Superstore" data source and use Orders table. Find out which state has recorded the second-highest profit in 2019 and what is the profit value? Drop the Order date to the...

Why is the output of investment goods and durable consumer goods more sensitive to the business cycle

Question:

Step by Step Answer:

When output is growing and business confidence is high investment rises sharply becau...View the full answer

Exploring Economics

Students also viewed these Business questions