What is an economic boom and an economic bust?

Answer 1

An economic boom is when buyers find themselves paying more and more of products. They will most likely be earning more money to be able to fund these consumer goods. Then when the prices are too high and when people cannot afford to buy the things they need there is an economic bust. Busts may be caused by many things. In the USA in 1929 the bust was caused by over production and the wall street crash. For further reading follow the link below.

Answer 2

An economic boom is a period of high financial growth in economy. GDP (Gross Domestic Product) is as a result increasing greatly, and consumer demand is strong. Consequently business firms will have healthy sales and will be generating large profits. A "bust" is a period of reduced economic activity, low growth, and reduced supply and demand.

Boom and Bust

The term boom and bust refers to a great buildup in the price of a particular commodity or, alternately, the localized rise in an economy, often based upon the value of a single commodity, followed by a downturn as the commodity price falls due to a change in economic circumstances or the collapse of unrealistic expectations.

Boom and bust phenomena have existed for centuries. During a "boom" period, buyers find themselves paying increasingly higher prices until the "bust", at which time the goods and commodities for which they have paid inflated prices may end up as valueless or nearly so.

Answer 3

An economic boom are periods of high financial growth in economy. GDP(Gross Domestic Product) is as a result increasing greatly and consumers demand is strong;consequently business firms will have healthy sales and will be generating large profits.

Answer 4

a business cycle