An economic expansion rather than a recession occurs

Question

Quizplus · Accepted Answer

Economic expansion occurs when the economy is growing, and one of the key measures of growth is positive growth in real GDP. Therefore, option D is the best answer. Option A is incorrect because economic expansion involves growth in the economy, which would likely lead to a decrease in unemployment, not a stagnant rate. Option B is incorrect because while low unemployment is a characteristic of an expanding economy, it is not a universal threshold for expansion. Lastly, option C is incorrect because a balanced federal budget is not necessarily indicative of economic growth or expansion.

An Economic Expansion Rather Than a Recession Occurs