Respuesta :
Answer:
It can be harder to find a job during an economic depression.
People tend to make more money during an expansion.
Prices on gas and food will tend to increase during an expansion.
Explanation:
Macroeconomic theory suggests that capitalism is cyclical, that is, the capitalist economy alters moments of expansion and economic retraction.
In times of expansion, the economy is warm, so production increases, making it easier to get jobs and make money. In this scenario of high production and low unemployment, the demand for goods and services - such as gas and food - increases, raising its price.
On the contrary, in situations of economic downturn, companies have a depreciation of their sales prospects, reducing production and consequently increasing unemployment. This reduces the demand for goods and services and consequently their prices.