ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Understanding Economic Expansion From a macro-perspective, GDP rises, disposable income per capita rises, and unemployment rates shrink due to a large number of job opportunities. A peak occurs when expansion reaches its climax. With a large sum of demand for goods, inflation occurs where costs begin to increase.

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: -An expansion can occur regardless of any increase in the economy’s long-term potential for production, and it only lasts until the next downturn, while economic growth increases the economy’s ability to produce more goods and services over the long term.

Detailed explanation-4: -A sustained period in which real GDP is rising is an expansion; a sustained period in which real GDP is falling is a recession.