Final answer:
The demand for durable goods declines by a greater percentage than does GDP during a recession.
Step-by-step explanation:
Durable goods are items that have a long lifespan, such as cars, furniture, and appliances. During a recession, the demand for durable goods typically declines by a greater percentage than GDP. This means that people are less likely to purchase these goods when the economy is in a downturn.
For example, during a recession, people may delay buying a new car or replace their old furniture. This decline in demand for durable goods is due to a decrease in consumer confidence and a decrease in disposable income.
Therefore, the correct answer is B) declines by a greater percentage than does GDP during a recession.