Sensitive Business Cycles

Sensitive Business Cycles
Sensitive Business Cycles

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Sensitive Business Cycles

Between general autos and general pharmaceutical firms, general autos firms are more sensitive to business cycles. Since the purchases in the auto industry are more discretionary compared to the pharmaceuticals, the general autos firm will be more sensitive.

Between Friendly Airlines and Happy Cinemas, the Friendly Airlines will be more sensitive to business cycles. The reason is that traveling expenditure is more sensitive to changes in the business cycle compared to entertainment expenditures such as the purchase of movie tickets.

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