Final answer:
A rise in economic growth is indicated by businesses expanding their operations to meet increasing demand. In the financial market, this growth can be associated with a rise in demand for loans or an increase in the supply of loanable funds. Economic growth and recession indicators include employment rates, trade surpluses, interest rates, and the state of trade relations with partner countries.
Step-by-step explanation:
A rise in economic growth is reflected by businesses expanding operations to satisfy demand. When firms perceive the state of the economy as growing, they are more likely to increase operations to meet the rising demand for goods and services. This often includes hiring a greater quantity of labor, which shifts the labor demand curve to the right. Such expansion typically corresponds with a healthy and growing economy. Conversely, if firms believe the economy is entering a recession, they may hire less, halting expansion, or possibly closing operations due to reduced demand, which would reflect a shrinking economy.
Referring to the financial market, when there is a rise in the quantity of loans made and received, such as for business expansions or new technologies, it usually signifies a rise in demand for loans or a rise in supply of loanable funds. An increase in the price of homes, a growing economy of a major trading partner, or the advent of a major new technology, can also impact economic activities and thus reflect changes in the economy's growth pattern.
On the other hand, indicators such as a rapidly growing trade surplus may hint at a recession rather than economic growth, as such a surplus could mean that domestic demand has fallen, reducing imports while exports remain relatively unchanged. All these factors tied together illustrate the dynamic and interconnected nature of economic indicators and their collective reflection on the state of economic growth.