Difference between growth and expansion in economy
Answers
Economic growth refers to the growth of the economy in terms of real GDP. Expansion is the phase in the business cycle in which this economic growth is occurring.
The costs of inflation means that the price level increases. This then reduces the purchasing power of a dollar and thus effectively lowers the incomes of households, since they can no longer purchase the same amount of stuff they once could with the same amount of money. It also causes erosion of personal savings, since the money is not worth as much any more.
An economic expansion is an increase in the level of economic activity, and of the goods and services available. It is a period of economic growth as measured by a rise in real GDP.Typically an economic expansion is marked by an upturn in production and utilization of resources.