Think about the characteristics of the expansion and contraction periods in a business cycle. How might the characteristics of these two phases affect your efforts to manage your financial resources? Check all that apply.

a) During a period of economic expansion, it is generally more difficult to make large-ticket purchases due to the greater likelihood of being unemployed.

b) During the early stage of an economic expansion, finding a job generally tends to be easier, because manufacturers and retailers generate relatively higher levels of production and output.