Question

Which of the following is most likely to indicate an economic expansion in the United States?

a. An increase in the average number of members per household from 4 in 2012 to 6 in 2015.

b. An increase in the annual average disposable income of households from $25,000 in 2014 to $35,000 in 2015.

c. An increase in the value of imports this year compared to the previous year.

d. An increase in the rate of unemployment in the current year compared to the previous year.

Answer 1

Answer :- Option 'b' is the correct Answer

An economic expansion is defined as the period between two economic recessions.​ An economic expansion begins at the end of a recession.In the United​ States, recessions are usually defined as​ two consecutive quarters of negative growth in real GDP.

Disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy.