During a serious recession we would expect output to fall the most in:
A)the alcoholic beverage industry.
B)the clothing industry.
C)agriculture industry.
D)the machinery and equipment industry.

Question

Quizplus · Accepted Answer

During a serious recession, consumers tend to cut back on discretionary spending and prioritize necessary purchases. This means that industries producing non-essential goods, such as alcoholic beverages and clothing, are likely to experience a decline in demand and output. On the other hand, industries producing essential goods, such as agriculture, would be less affected. However, the machinery and equipment industry may see a decrease in demand as businesses cut back on investments in new equipment and technology.

During a Serious Recession We Would Expect Output to Fall