Economic booms refer to periods of rapid expansion in economic activity characterized by high GDP growth rates, low unemployment rates, increased investment levels, and rising consumer spending.
Related terms
Aggregate Demand: Aggregate demand represents the total demand for goods and services within an economy at a given time. It consists of consumer spending, government spending, investment, and net exports.
Business Cycle: The business cycle refers to the recurring pattern of economic expansion and contraction over time. It consists of four stages: expansion (boom), peak, contraction (recession), and trough.
Inflation: Inflation is the sustained increase in the general price level of goods and services in an economy over time. During economic booms, inflation may be a concern due to increased demand for resources leading to higher prices.