During Business Cycle Expansions When?

Expansion is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak. Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery.

At what point does an expansion begin in the business cycle?

An expansion begins at the trough (or bottom) of a business cycle and continues until the next peak, while a recession starts at that peak and continues until the following trough. U.S. expansions have typically lasted longer than U.S. recessions.

What causes expansion in the business cycle?

Economic expansion happens when real GDP grows from a trough to a peak within two or more subsequent quarters. The expansion occurs during times of economic stimulation, where there is a rise in employment, followed by consumer confidence and discretionary spending. The phase is also known as economic recovery.