Identifying the Expansion Phase of the Business Cycle

The business cycle is a term used to describe the fluctuation in economic activity that an economy experiences over time. The cycle is typically characterized by periods of expansion, where the economy grows as evidenced by increases in various economic indicators, followed by periods of contraction, where the economy experiences a downturn. Understanding these phases is crucial for policymakers and economists alike.

Which of the following phases of the business cycle is defined as a period during which economic activity is on the rise, evidenced by increasing output and employment levels?