Question

The current economic expansion has lasted for more than10 years. What

changes might you observe in the economy when the expansion ends?

An expansion is between trough and peak.

Please be concise and be clear of what you are explaining.

Answer 1

Business cycle follows a pattern of peak, recession, trough, expansion and peak, after reaching a peak in the market, the economy starts recession that means a fall in the demand and increase in the unemployment level in the market.

After having a 10 year expansion the US economy is reaching a peak and after than recession will follow, this will be rough time and will lead to a lack of demand and increased unemployment in the US market. When the expansion and the economy has reached the peak the demand will start slowing down and recession will be there in the market. The price of the goods and services will fall, the Fed will lower the interest rate to pick the demand and imports will also fall.