ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is a Boom? A boom refers to a period of increased commercial activity within either a business, market, industry, or economy as a whole. For an individual company, a boom means rapid and significant sales growth, while a boom for a country is marked by significant GDP growth.

Detailed explanation-2: -A boom is characterized by a period of rapid economic growth whereas a period of relatively stagnated economic growth is a recession. These are measured in terms of the growth of the real GDP, which is inflation-adjusted.

Detailed explanation-3: -During the boom the economy grows, jobs are plentiful and the market brings high returns to investors. In the subsequent bust the economy shrinks, people lose their jobs and investors lose money. Boom-bust cycles last for varying lengths of time; they also vary in severity.

Detailed explanation-4: -The term economic boom generally refers to countries or regions enjoying positive overall performance. It is seen like a phase of optimism, confidence and development. For example, there was a boom in the United States during the 1920s when the Gross National Product grew 40% from 1921 to 1924.

Detailed explanation-5: -A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall.