Final answer:
During the expansion phase of the business cycle, economic indicators such as GDP, employment, production, and investment generally increase due to higher economic activity.
Step-by-step explanation:
During the expansion phase of the business cycle, various economic metrics eventually increase. During this phase, the economy experiences a rise in economic activity, which includes increased production, more employment opportunities, rising consumer demand, and increased capital investment. Businesses are more likely to invest in physical capital and hire more workers to meet the growing demand for their products and services. Consequently, this investment and hiring can lead to higher levels of income and spending, which in turn stimulate further economic growth.
It's important to note that if the shift in aggregate demand outpaces the increase in aggregate supply, the economy might also see an inflationary increase in the price level. However, this does not negate the general rise in economic activity that characterizes the expansion phase. Therefore, during the expansion phase of a business cycle, a broad range of economic indicators such as GDP, employment, production, and investment will generally show an upward trend.