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| Page 252 Of all of the aggregate demand components, consumption is the most stable. While investment is highly unstable, government purchases can vary due to decisions by government policy-makers. Net exports, meanwhile, are affected not just by income changes in the domestic economy (imports) and in the rest of the world (exports), but also by variations in the exchange rate. Page 258 As IT innovations are adopted throughout the economy, the efficiency of old-economy businesses is being improved. The gradual spread of new communications methods and the expanded uses of computer technology are particularly important aspects of these trends. Page 268 Sectors producing nondurable consumer goods and services are least affected by a downturn, since households tend to purchase these items regardless of changes in the business cycle. |