What action typically occurs during an economic expansion phase?

During an economic expansion phase, increased hiring is a common occurrence. This phase is characterized by growing economic activity, which leads to businesses increasing their production to meet higher consumer demand. As a result, companies often need more employees to support this increased level of production and services. This process creates more job opportunities, reduces unemployment rates, and contributes to overall economic growth.

In this context, higher consumer confidence and spending typically accompany economic expansion, which drives businesses to expand their workforce. It is a period where the labor market strengthens, and employers actively seek to fill positions to capitalize on the growing economy.

While stabilization of prices can happen during various economic conditions, it does not specifically signify an economic expansion. Conversely, increased layoffs and decreased consumer spending would usually be associated with an economic downturn where the opposite actions are prevalent.