ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The business cycle depicts the rise and fall in output (production of goods and services), over time. The upswing of the business cycle towards a peak is called an economic expansion.

Detailed explanation-2: -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-3: -A recession is the period between a peak of economic activity and its subsequent trough, or lowest point. Between trough and peak, the economy is in an expansion. Expansion is the normal state of the economy; most recessions are brief.

Detailed explanation-4: -An economic expansion is a period of growth throughout an economy. Because productivity is increasing, it is generally represented on a curve as an upward movement. In some cases, the expansion phase is also known as the “economic recovery” phase because it occurs after the economy has contracted for a long period.

Detailed explanation-5: -1. In the expansion phase, there is increase in economic activity such as production, employment, output, wages, profits, demand and supply of products and sales.