What does boom and bust mean in economics?

What does boom and bust mean in economics? A boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. The boom and bust cycle is a key characteristic of today’s capitalist economies. During the boom the economy grows, jobs are plentiful and the market brings high returns to investors.

What is the economic cycle of boom and bust?

The boom and bust cycle is a business cycle that covers alternating periods of growth and decline of an economy. In a boom period, the economy enjoys good growth that ultimately results in plentiful jobs and good returns from the stock market.While in the bust cycle, an economy faces the exact opposite of the boom cycle, which means shrunk economy, fewer jobs, a decrease in stock value, and a ...

What caused the housing boom and bust?

Three forces combine to cause the boom and bust cycle. They are the law of supply and demand, the availability of financial capital, and future expectations. These three forces work together to cause each phase of the cycle. In the boom phase, strong consumer demand is the leading force.