What economic period is characterized by decreased unemployment, rising wages and increased consumer spending?

The correct choice, which highlights an economic period characterized by decreased unemployment, rising wages, and increased consumer spending, is Expansion. During this phase of the economic cycle, the economy experiences growth and improvement in various indicators that reflect economic health.

In an expansion, businesses grow and hire more employees as demand for goods and services increases. This contributes to lower unemployment rates since more people are finding jobs. With more individuals employed, there is an upward pressure on wages, as employers compete for talent and strive to keep their workforce satisfied. Higher wages mean that consumers have more disposable income, leading to increased consumer spending. This cycle of growth feeds on itself, often resulting in further investment and development in the economy.

In contrast, recession and depression refer to periods of economic decline, where unemployment typically rises, and consumer spending generally falls. Stagnation denotes a period of no growth or high unemployment with little change in consumer behavior, which is the opposite of what is observed in an expansion. This understanding of different economic phases is crucial for analyzing market trends and making informed business decisions.