It is marked by rising GDP, increased consumer spending, and business investments.

Employment levels generally increase, and businesses are optimistic about the future.

Factors contributing to expansion include government policies, positive business sentiment, and technological advancements.

It normally occurs when the economy is operating at full capacity with low unemployment rates and high levels of production.

Inflationary pressures can begin to build up during this phase.

Consumer and business confidence tend to be high, but signs of a slowdown may start to emerge.

It is characterized by falling GDP, decreased consumer spending, and a decline in business investments.

Unemployment rates rise, and businesses become cautious, leading to reduced production and layoffs.

Factors contributing to contraction include decreased consumer confidence, financial crises, and tightening monetary policies.

It is characterized by high unemployment rates, low production levels, and weak consumer spending.

Economic indicators start to stabilize, and there may be signs of potential recovery.

Government interventions and policy measures are often implemented to stimulate the economy during this phase.

Trade policies, foreign competition, and exchange rates can affect a country's economic performance.

Global recessions or crises can trigger a domino effect on economies around the world.

Economic policies, fiscal measures, and monetary policies implemented by the government can influence economic growth or contraction.

Consumer and business confidence, technological advancements, and innovation contribute to the overall economic performance.