Total motor vehicle sales in Australia:
A)have slowly decreased over time.
B)decline by a greater percentage than does GDP during an economic contraction.
C)decline by a smaller percentage than does GDP during an economic contraction.
D)remain constant during business cycles.

Question

Quizplus · Accepted Answer

During economic contractions, consumer confidence typically decreases, leading to reduced spending on non-essential goods, including motor vehicles. This results in motor vehicle sales declining by a greater percentage than the overall GDP, as consumers prioritize essential spending and delay larger purchases.

Total Motor Vehicle Sales in Australia