An expansion is a period when real GDP is above potential GDP.

Name: An expansion is a period when real GDP is above potential GDP.
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An expansion is a period when real GDP is growing, not necessarily when it is above potential GDP. Potential GDP refers to the maximum output an economy can produce without causing inflation, while an expansion indicates the economy is growing, which can occur even when real GDP is below potential GDP.

An Expansion Is a Period When Real GDP Is Above