Prosperity and Depression.pdf

Nature and Causes of the CyclePart IIor semi-closed economies where the producers' goods inrlustriesare relatively undeveloped, that the absolute magnitude of thesefluctuations in production is greater in the consumers' goodsindustries. .But in almost all cases it will be found that theamplitude of the fluctuations measured with reference tocc normal" production (i.e. tthe relative fluctuations) is greaterin the producers' goods industries. Moreover, not only is theiramplitude greater, but the fluctuations in these industries aremuch more regular, and· conform much more closely with thebusiness cycle in general, than the fluctuations in the consumers'goods industries.When we speak of consumers' goods, we mean perishableconsumers' goods (such as food) and semi...durable goods (such asclothing, shoes and furniture). Durable consumers' goods (suchas apartment houses) show very wide fluctuations, and belongrather to the category of capital goods, for reasons which havealready been discussed and will be touched upon again.