Explain the concept of expansion in a business cycle.

Explain the concept of expansion in a business cycle.

Expansion in a business cycle refers to a phase of economic growth and increased economic activity. During this phase, there is an increase in production, employment, and consumer spending. Businesses experience higher profits, and there is an overall improvement in economic indicators such as GDP, industrial production, and retail sales. Expansion is characterized by rising business confidence, increased investment, and expansionary monetary and fiscal policies. It is typically marked by low unemployment rates, rising wages, and a general sense of optimism in the economy.