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AssignmentMultiple Select

The Business Cycle

Question 1 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

How does the business cycle affect consumers? Check all that apply.

Answer
A
It can be harder to find a job during an economic depression.
B
Prices on food and clothing will tend to decrease during an expansion.
C
People tend to make more money during an expansion.
D
It can be easier to find a job during an economic depression.
E
Prices on gas and food will tend to increase during an expansion.

Explanation

During a depression, businesses often cut back or close, so jobs are harder to find; this makes A correct and D incorrect. During an expansion, businesses and incomes tend to grow, so people tend to make more money (C). Increased economic activity and demand can also push prices, including gas and food, upward (E), rather than making food and clothing prices tend to decrease as B suggests.

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