Expansion
A phase of the business cycle characterized by increasing economic activity, rising employment, and growing production.
Expansion is the period between a trough and a peak in the business cycle. It signifies a healthy, growing economy, but unchecked expansion can lead to inflation.
Word relationships
- growth: General term for increase, 'expansion' specifically refers to a phase in the business cycle.
- boom: Often implies a more rapid and perhaps unsustainable period of expansion.
- contraction: A phase of the business cycle characterized by decreasing economic activity.
- recession: A specific type of contraction defined by a fall in GDP.
Word family
- expand (verb): to become or make larger or more extensive
- expansive (adjective): covering a wide area in scope or content
Collocations
- economic expansion
- period of expansion
- sustained expansion
- rapid expansion
- business expansion
Example sentences
- "Following the recession, the economy entered a period of robust expansion, with new businesses opening and unemployment rates falling." Describing the business cycle.
- "Analysts predict a continued expansion in the tech sector, driven by innovation and consumer demand." An analyst's report.
Memory hook
Think of the economy 'expanding' like a balloon getting bigger. Economy Spreads Out
When not to use
Do not use 'expansion' to describe a single company's growth if you mean the overall economy; use 'company growth' or 'market share increase' instead.
Fun facts
- The longest economic expansion in U.S. history lasted from March 1991 to March 2001, a full decade.
- Economists often look at leading indicators to predict when an expansion might begin or end.
Related words
Explore more words
Bubble, buoyant, proliferation, Appreciation, Wage-price spiral
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