Which of the following best describes economic expansion?

Economic expansion is best described as a phase of increased business activity and growth. During this period, key indicators such as Gross Domestic Product (GDP), employment rates, and consumer spending typically rise. Businesses often invest in new projects and hire more employees, leading to a cycle of increased production and consumption. This growth phase can occur after a recession or economic contraction and signals a robust economy where confidence in financial markets and economic conditions is high.

The other options highlight aspects that are contrary to the definition of economic expansion. For instance, a period of declining economic activity clearly indicates a contraction rather than an expansion, while government intervention may impact economic conditions without inherently leading to an expansion. Finally, a transition to a recession directly contradicts the notion of expansion, as it signifies an economic downturn rather than growth.