ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Expansion is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak. Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery.

Detailed explanation-2: -A sustained period in which real GDP is rising is an expansion; a sustained period in which real GDP is falling is a recession.

Detailed explanation-3: -During an expansion phase of the business cycle, real GDP is increasing. 1. The expansion phase is sometimes called recovery.

Detailed explanation-4: -An increase in nominal GDP may just mean prices have increased, while an increase in real GDP definitely means output increased.

Detailed explanation-5: -Normally, during an economic recovery, gross domestic product (GDP) grows, incomes rise, and unemployment falls as the economy rebounds.