End of small businesses, firms and corporations
Business is usually at its best during the expansion phase. This is the phase when most businesses prosper. Demand for goods and services grows, unemployment falls as firms hire more workers to meet demand and incomes generally rise. During expansion , there is an economic growth. The expansion phase is however limited. As expansion continues, strong demand begins to drive up prices causing inflation, bank interest rates rise and soon employers begin to retrench to pay off debt and the economy begins to contract.