Economic expansion
Encyclopedia
An economic expansion is an increase in the level of economic activity, and of the goods and services available in the market place
. It is a period of economic growth as measured by a rise in real GDP
.The explanation of such fluctuations in aggregate economic activity is one of the primary concerns of macroeconomics
.
Typically an economic expansion is marked by an upturn in production and utilization of resources. Economic recovery
and prosperity are two successive phases of expansion. It 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.
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.
Expansion means 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.
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
. It is a period of economic growth as measured by a rise in real GDP
Real GDP
Real Gross Domestic Product is a macroeconomic measure of the value of output economy adjusted for price changes . The adjustment transforms the money-value measure, called nominal GDP, into an index for quantity of total output...
.The explanation of such fluctuations in aggregate economic activity is one of the primary concerns of macroeconomics
Macroeconomics
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. This includes a national, regional, or global economy...
.
Typically an economic expansion is marked by an upturn in production and utilization of resources. Economic recovery
Economic recovery
,An economic recovery is the phase of the business cycle following a recession, during which an economy regains and exceeds peak employment and output levels achieved prior to downturn. A recovery period is typically characterized by abnormally high levels of growth in real gross domestic product,...
and prosperity are two successive phases of expansion. It 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
Fiscal policy
In economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
, monetary policies
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
, the availability of credit
Credit (finance)
Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
, interest rates, regulatory policies
Regulation
Regulation is administrative legislation that constitutes or constrains rights and allocates responsibilities. It can be distinguished from primary legislation on the one hand and judge-made law on the other...
or other impacts on producer incentives. Global conditions may influence the levels of economic activity in various countries.
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.
Expansion means 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.