which of the following industries is most sensitive to changes in the business cycle course hero

How do industries react to business cycle fluctuations?

The food and pharmaceutical industries. d. All are equally sensitive to changes in the business cycle. Question: Which of the following industries is most sensitive to changes in the business cycle? Select one: a. The tobacco and alcohol industries. b. The automobile industry. c.

Which industries have the most cyclical employment?

Oct 22, 2020 · Which of the following industries is most sensitive to changes in the business cycle? A. The tobacco and alcohol industries. B. The automobile and durable goods industries. C. The food and pharmaceutical industries. D. All of the above are equally sensitive to changes in the business cycle

What is the degree of correlation between GDP and cyclical industries?

Oct 29, 2021 · Which of the following industries is most sensitive to changes in the business cycle? Almost all studies of sectoral sensitivity have identified durable manufacturing as the sector most sensitive to fluctuations in the business cycle.

Is the business cycle correlated with employment or final demand?

Which of the following industry is sensitive to business cycle and price changes from FIN INVESTMENT at California State University, Fullerton

Which industries are sensitive to business cycle?

A cyclical industry is a type of industry that is sensitive to the business cycle, such that revenues generally are higher in periods of economic prosperity and expansion and are lower in periods of economic downturn and contraction.

What are the characteristics that increases firms sensitivity to the business cycle?

Sensitivity Factors A cyclical company is likely to experience wider-than-average fluctuations in demand, high demand in economic expansion, and low demand in economic contraction. It may be subject to greater-than-average profit variability related to high operating leverage.Jun 15, 2019

Is manufacturing a cyclical industry?

Heavy equipment manufactures are another type of cyclical industry that is interrelated to other cyclical industries and may experience a downturn due to market conditions that inhibit new construction.Feb 11, 2022

Which one of the following industries is least affected by the business cycle?

The healthcare industry tops the list among the industries that are not affected by the economic slowdown. There will be no change in the demand for the medicines or services provided by doctors or for even advanced treatments.Jan 3, 2020

Which of the following is an example of a company in a defensive industry?

Water, gas, and electric utilities are examples of defensive stocks because people need them during all phases of the business cycle. Utility companies also get another benefit from a slower economic environment because interest rates tend to be lower.

What are defensive industries?

Defensive industries comprise businesses that are relatively stable or relatively immune to economic fluctuations, i.e., economic expansions and recessions. In macroeconomics, recessions are officially recognized after two consecutive quarters of negative GDP growth rates..

What are examples of cyclical industries?

Cyclical industry examplesAirlines.Automakers.Construction.Discretionary goods, such as home appliances.Durable goods, such as industrial equipment.Finance.Luxury goods, such as designer clothing.Mining.More items...•Feb 22, 2021

What causes the business cycle to fluctuate?

Every nation's economy fluctuates between periods of expansion and contraction. These changes are caused by levels of employment, productivity, and the total demand for and supply of the nation's goods and services. In the short-run, these changes lead to periods of expansion and recession.