Boom and Bust Economy

A boom and bust economy is a cycle where economic activity rapidly expands (boom), with increased spending, investment, and growth, often leading to higher prices and job creation. This is typically followed by a slowdown (bust), where demand drops, businesses struggle, and unemployment rises. The cycle repeats as confidence and market conditions fluctuate, causing periods of rapid growth and subsequent contraction. These swings can be driven by various factors like technological innovations, financial speculation, or external shocks, and they can impact people's livelihoods and financial markets.