ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Expansion – During this phase employment, income, industrial production, and sales all increase, and there is a rising real GDP. Peak – This is when an economic expansion hits its ceiling.

Detailed explanation-2: -Expansion: The economy is moving out of recession. Money is cheap to borrow, businesses build up inventories again and consumers start spending. GDP rises, per capita income grows, unemployment declines, and equity markets generally perform well. Peak: The expansion phase eventually peaks.

Detailed explanation-3: -Economic expansion happens when real GDP grows from a trough to a peak within two or more subsequent quarters. The expansion occurs during times of economic stimulation, where there is a rise in employment, followed by consumer confidence and discretionary spending. The phase is also known as economic recovery.

Detailed explanation-4: -The first stage in the business cycle is expansion. In this stage, there is an increase in positive economic indicators such as employment, income, output, wages, profits, demand, and supply of goods and services.

Detailed explanation-5: -Lower unemployment. With higher output and positive economic growth, firms tend to employ more workers creating more employment.