Industries react in different ways to business cycle fluctuations in the economy. Some industries are very vulnerable to economic swings, some are relatively immune to them, and others prosper during a recession. For cyclical industries, the degree and timing of these fluctuations vary widely. The industries that experience limited gains during expansionary periods may also experience small declines during contractions, and those that recover fastest from recessions may also feel the impact of a downturn earlier and more strongly than other industries.

In this activity, you will discuss industry sensitivity to the business cycle. In your discussion, describe at least two industries and comment on how their performance depends on the phase of the business cycle.

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Lets explore two industries and their sensitivity to the business cycle Automotive Industry Expansionary Periods During economic expansions consumer c... View the full answer