Panel (a) shows movements in Real GDP for each quarter from the beginning of 1999 through the beginning of 2017. Panel (b) shows movements in the sales of motor vehicles and gasoline for the same years. Use the graphs to determine which one of the following statements is true,
The effects of the recession on sales of motor vehicles are approximately the same as the effects on the economy as a whole.
The effects of the recession on sales of motor vehicles are much less dramatic and long-lived than the effects on the economy as a whole.
The effects of the recession on sales of motor vehicles are much more dramatic and long-lived than the effects on the economy as a whole.
The graphs do not provide enough information to determine how the effects of the recession on sales of motor vehicles compare against the effects on the economy as a whole.
Answer:
The effects of the recession on sales of motor vehicles are much more dramatic and long-lived than the effects on the economy as a whole
Step-by-step explanation:
This is because the mean age of car purchased has not returned to its original prerecession level due to new car buyers holding on to the cars longer than usual.