Which phase of the business cycle describes the economy's growth?

The phase of the business cycle that describes the economy's growth is identified as expansion. During this stage, economic activity increases as consumer and business confidence rises, leading to higher levels of production, employment, and investment. Businesses typically experience greater demand for goods and services, which in turn encourages hiring and capital investment, resulting in a positive feedback loop that further stimulates growth.

The expansion phase contrasts with other stages of the business cycle. The peak phase represents the point at which the economy has reached its highest level of activity before a downturn begins; it is characterized by maximum output and employment but does not signify growth. The trough is the lowest point of the cycle, where economic activity has declined substantially, and recovery is the period that follows a trough when the economy begins to grow again. However, recovery is not synonymous with growth but rather the beginning of a return to the expansion phase.