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Economic Expansion

Definition

Economic expansion refers to a period of time when the economy is growing and experiencing positive changes in various economic indicators, such as increased production, real GDP, employment rates, and consumer spending.

Analogy

Think of an economic expansion like a roller coaster going up. Just like how a roller coaster ascends to higher points, an economic expansion involves the economy reaching new heights with increased output and prosperity.

Related terms

Business Cycle: The business cycle refers to the fluctuations in economic activity between periods of economic expansion (growth) and contraction (recession).

Gross Domestic Product (GDP): GDP is the total value of all final goods and services produced within a country during a specific period. It serves as a measure of the overall size and growth rate of an economy.

Employment Rate: The employment rate is the percentage of people who are employed and actively seeking work out of the total labor force. It indicates how effectively an economy utilizes its available workforce.