Economic expansion

An economic expansion is an increase in the level of economic activity, and of the goods and services available. It is a period of economic growth as measured (for example) by a rise in real GDP.^[1]^{[failed verification]}^[2] The explanation of fluctuations in aggregate economic activity between economic expansions and contractions ("booms" and "busts" within the "business cycle") is one of the primary concerns of macroeconomics.^[3]

Typically an economic expansion is marked by an upturn in production and in utilization of resources. Economic recovery and prosperity are two successive phases of expansion, whereas a recession is defined as two declining periods of GDP. Expansion may be caused by factors external to the economy, such as weather conditions or technical change, or by factors internal to the economy, such as fiscal policies, monetary policies, the availability of credit, interest rates, regulatory policies or other impacts on producer incentives. Global conditions may influence the levels of economic activity in various countries.^{[citation needed]}

Economic contraction and expansion relate to the overall output of all goods and services, while the terms "inflation" and "deflation" refer to increasing and decreasing prices of commodities, goods and services in relation to the value of money.^{[citation needed]}

On the microeconomic level, expansion may involve enlarging the scale of a company. The ways of expansion include internal expansion and integration. Internal expansion means a company enlarges its scale through opening branches, inventing new products, or developing new businesses. Integration means a company enlarges its scale through taking over or merging with other companies.^{[citation needed]}

References

^ O'Sullivan, Arthur; Steven M. Sheffrin (2003). Economics. Upper Saddle River, New Jersey: Savvas Learning Company. p. 310. ISBN 0-13-063085-3.
^ Compare: Social Research. 6. New York: Graduate Faculty of Political and Social Science, New School for Social Research: 154. 1939. I would define economic expansion as the increase of aggregate production from one production period to another. If the concept is defined in this general way it includes expansion that results from an increase in population [...]. {{cite journal}}: Missing or empty |title= (help)
^ Ryan, Cillian; Mullineux, Andrew W. (1 January 1997). "The ups and downs of modern business cycle theory". In Snowdon, Brian; Vane, Howard R. (eds.). Reflections on the Development of Modern Macroeconomics. Cheltenham: Edward Elgar Publishing. p. 136. ISBN 9781781008492. Retrieved 22 May 2023. [...] the primary focus of macroeconomics swung back from determining and manipulating the equilibrium level of output to the 'business cycle'.

External links

"Business Cycle Expansions and Contractions", National Bureau of Economic Research

[1] O'Sullivan, Arthur; Steven M. Sheffrin (2003). Economics. Upper Saddle River, New Jersey: Savvas Learning Company. p. 310. ISBN 0-13-063085-3.

[2] Compare: Social Research. 6. New York: Graduate Faculty of Political and Social Science, New School for Social Research: 154. 1939. I would define economic expansion as the increase of aggregate production from one production period to another. If the concept is defined in this general way it includes expansion that results from an increase in population [...]. {{cite journal}}: Missing or empty |title= (help)

[3] Ryan, Cillian; Mullineux, Andrew W. (1 January 1997). "The ups and downs of modern business cycle theory". In Snowdon, Brian; Vane, Howard R. (eds.). Reflections on the Development of Modern Macroeconomics. Cheltenham: Edward Elgar Publishing. p. 136. ISBN 9781781008492. Retrieved 22 May 2023. [...] the primary focus of macroeconomics swung back from determining and manipulating the equilibrium level of output to the 'business cycle'.

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v t e Economic expansions and recessions in the United States and Commonwealth of Nations countries
Aggregate demand/Supply Effective demand General glut Model Overproduction Paradox of thrift Price-and-wage stickiness Underconsumption Business cycle Deflation/Inflation Chronic Classical dichotomy Disinflation Money supply/demand Neutrality of money Price level Real and nominal values Velocity of money Economic expansion Recovery Stagnation U.S. expansions Interest rate Nominal interest rate Real interest rate Yield curve/Inverted Recession Balance sheet Depression Global Rolling Shapes Stagflation U.K. recessions U.S. recessions Shock Demand Supply Unemployment Sahm rule
Commercial revolution (1000–1760)	Great Slump (1430–1490) Slump of 1706 Great Frost of 1709
1st Industrial Revolution (1760–1840)	British credit crisis of 1772–1773 1772–1774; England Scotland American Colonies 1785–1788 Copper Panic of 1789/Panic of 1792 (1789–1793) Panic of 1796–1797 (1796–1799) 1802–1804 1807–1810 1812 Post-Napoleonic Depression (1815–1821) 1822–23 Panic of 1825 (1825–1826) 1828–29 1833–34 Panic of 1837 (1836–1838 and 1839–1843)
Early Victorian Britain/ Civil War-era United States (1840–1870)	1845–46 Panic of 1847 (1847–1848) 1853–54 Panic of 1857 (1857–1858) 1860–61 Panic of 1866 (1865–1867) Black Friday (1869–1870)
Gilded Age/ 2nd Industrial Revolution (1870–1914)	Long Depression/Great Deflation 1873–1879; United Kingdom United States Depression of 1882–1885 1887–88 Baring crisis (1890–1891) Panic of 1893 (1893–1897) 1899–1900 Panic of 1901 (1902–1904) Panic of 1907 (1907–1908) Panic of 1910–11 (1910–1912) Financial crisis of 1914 (1913–14)
Interwar period (1918–1939)	Post–World War I recession (1918–1919) Depression of 1920–1921 Roaring Twenties 1923–1924 1926–1927 Great Depression 1929–1939; Australia Canada India New Zealand South Africa United Kingdom United States Recession of 1937–1938
Post–WWII expansion (1945–1973)	1945 Recession of 1949 (1948–1949) Recession of 1953 (1953–1954) Recession of 1958 (1957–1958) Recession of 1960–1961 Recession of 1969–1970
Great Inflation (1973–1982)	1973–1975 recession United Kingdom United States Early 1980s recession 1980–1982; Canada United Kingdom United States
Great Moderation/ Great Regression (1982–2007)	1990s United States boom Early 1990s recession 1990–1991; Australia Canada United Kingdom United States 1997 Asian financial crisis Early 2000s recession (2001)
Information Age (2007–present)	Great Recession 2007–2009; Australia Bangladesh Canada India Malaysia New Zealand Pakistan South Africa Sri Lanka United Kingdom United States COVID-19 recession 2020–2022; Australia Bangladesh Belize Botswana Canada India Malaysia Namibia New Zealand Singapore United Kingdom United States Zambia