ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An expansion refers to the period in a business cycle where there is a rapid increase in the national output, income, and employment.

Detailed explanation-2: -Unemployment increases during business cycle recessions and decreases during business cycle expansions (recoveries). Inflation decreases during recessions and increases during expansions (recoveries).

Detailed explanation-3: -In the expansionary phase, the economy experiences growth over two or more consecutive quarters. Interest rates are typically lower, employment rates rise, and consumer confidence strengthens. The peak phase occurs when the economy reaches its maximum productive output, signaling the end of the expansion.

Detailed explanation-4: -A trough in the business cycle is a period of negative gross domestic product (GDP) that forms the lowest point in an economic cycle. It indicates that a recession is underway.