Explain the concept of economic growth in a business cycle.

Economics Business Cycles Questions



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Explain the concept of economic growth in a business cycle.

Economic growth refers to the increase in the production and consumption of goods and services in an economy over a period of time. In the context of a business cycle, economic growth typically occurs during the expansion phase. During this phase, there is an increase in economic activity, leading to higher levels of employment, income, and investment. This growth is often driven by factors such as technological advancements, increased consumer spending, and business investments. Economic growth is measured by indicators such as Gross Domestic Product (GDP), which reflects the total value of goods and services produced within a country.