Economic Expansion

Economic expansion refers to a period when the economy grows, indicated by an increase in key indicators such as GDP (Gross Domestic Product), employment rates, and consumer spending. During expansion, businesses produce more goods and services, leading to higher profits and wages, which in turn boosts consumer confidence and spending. This cycle encourages investment and innovation. Economic expansion can improve living standards, but if it grows too quickly, it may lead to inflation, where prices rise as demand outpaces supply. Understanding these dynamics helps in recognizing the overall health of an economy.