During which phase of the economy do businesses tend to make profits and expand operations?

During the expansion phase of the economy, businesses experience rising demand for their products and services, which leads to increased sales and profits. This growth in consumer spending drives companies to invest in new projects, hire more employees, and expand their operations to meet the heightened demand. During this phase, favorable economic indicators such as rising GDP, lower unemployment rates, and increased consumer confidence create an environment ripe for business success and growth. The conditions are optimal for innovation, investment, and scaling operations, enabling businesses to benefit from economies of scale and improve overall profitability.