AP MacroeconomicsThe Business Cycle
Expansion
An expansion is a period of increasing economic activity, characterized by rising output, employment, and income.
An expansion is the phase of the business cycle following a trough, during which the economy experiences sustained growth. During an expansion, businesses increase production, hire more workers, and invest in new projects. Consumer spending rises, and the overall economic outlook improves. Expansions can vary in length and strength, but they typically last longer than contractions.
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