ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -increase in production/output • decrease in unemployment • increase in wages • increase in consumer spending. As the economy expands, businesses generally see an increase in sales or demand for their products. They will produce more goods and services to meet this increase in demand.

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: -Business Cycles occur on a regular basis. They feature identifiable phases such as expansion, peak, contraction, depression, and trough, albeit they do not show the same regularity. In addition, Cycle duration varies greatly, from a minimum of two years to a maximum of 10 to twelve years.

Detailed explanation-4: -An expansion is a period of increasing output, which means that the economy is growing. Expansion is not a period of decreasing output, that would be the contraction phase.

Detailed explanation-5: -In the expansion phase, there is increase in economic activity such as production, employment, output, wages, profits, demand and supply of products and sales. 2. The economy then reaches peak, where the maximum limit of growth is attained and economic indicators do not grow further.