Question: What does the figure below suggest? 80% 0 Machine tools 60% 0 40% 20% Changes in demand 0% GDP Autos -20% -40% -60% -80% Source

What does the figure below suggest? 80% 0 Machine tools 60% 0 40% 20% Changes in demand 0% GDP Autos -20% -40% -60% -80% Source Anderson Fire and a Swings in the economy are unrelated to swings in demand within a supply chain. The machine tool industry is less susceptable to swings in the economy as compared to the auto industry. Relatively small changes in the economy reverberate to create big swings in demand upstream in a supply chain. Relatively small demand changes upstream in a supply chain reverberate downstream to create big swings in the economy

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