Question

An expansion is: a period in which the economy is growing at a rate significantly below normal. a period in which the economy is growing at a rate significantly above normal. the high point of economic activity prior to a downturn. the low point of economic activity prior to a recovery.

Answer 1

Answer:

A period in which the economy is growing at a rate significantly above normal.

Explanation:

The economy experiences relatively fast growth during the expansion process, interest rates continue to be small, output rises and inflationary pressures are building up. Once the economy reaches a low point, the cycle peak is reached, and development starts to recover.

Expansion is sometimes described as the first step in the business cycle, but this is an arbitrary point of departure, here the economy has a constant stream in the supply of capital, and the investment booms.

Answer 2

Answer:

a period in which the economy is growing at a rate significantly above normal

Explanation:

At expansion, real GDP increases and unemployment decreases.

The economy of all nations are always between periods of expansion and contraction. These occurrences happen because of employment, productivity, total demand for and supply of the nation’s goods and services levels. While in the short-run, they lead to periods of expansion and recession. But in the long-run there can be economic growth