Sophia Macroeconomics Unit 1 Milestone 1

Select the statement below that corresponds to the business cycle. The process of expansion and contraction of the GDP Happens between expansions and recessions Shows only the periods of economic decline Happens between recessions and expansions 7/30/2020 Sophia :: Welcome CONCEPT Business Cycles - Expansionary/Recessionary (NBER) 2 Which of the following could cause a shift in the demand curve? A major shift in supply A change in income A change in quantity A change in production capacity CONCEPT Supply and Demand 3 Determine which statement below about economics is true. Economics predicts what the market will do in the future. Macroeconomics studies the decisions of individual consumers and firms. 7/30/2020 Sophia :: Welcome As a field of study, economics is pretty much the same around the world. Economics studies decision-making processes. CONCEPT What is Economics? 4 If the price of a gallon of gasoline in California was $0.99 in 1997 and is currently $3.69, prices