5
AssignmentMultiple Select

The Business Cycle

Question 5 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

How does the business cycle affect consumers? Check all that apply.It can be harder to find a job during an economic depression.Prices on food and clothing will tend to decrease during an expansion.People tend to make more money during an expansion.It can be easier to find a job during an economic depression.Prices on gas and food will tend to increase during an expansion.

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 an economic depression, businesses often cut back or close, so jobs are harder to find. During an expansion, businesses generally produce and sell more, which can mean more jobs and higher incomes for consumers. Increased demand during an expansion can also put upward pressure on prices, so food and gas prices may rise rather than decrease.

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