Expansion

Expansion, in the context of business cycles, refers to a period of economic growth where the economy experiences increasing levels of production, employment, and consumer spending. During this phase, businesses invest more, hire additional workers, and people generally have more income to spend. This leads to a rise in demand for goods and services, resulting in higher sales and profits for companies. As confidence in the economy grows, it can create a positive feedback loop, further boosting growth until the economy may eventually reach a peak before transitioning into a slowdown or recession.