Boom
A boom is an expansion phase of the business cycle with rapid real GDP growth, falling unemployment, rising investment, and increasing profits.
Real World
The late 1990s dot-com boom saw UK GDP growing at over 3% annually, unemployment falling below 5%, and London house prices doubling — but it ended with the 2001 tech crash when speculative investment in firms like Boo.com evaporated.
Exam Focus
Always evaluate whether a boom is sustainable; examiners reward discussion of inflation risks, asset bubbles, and overheating.
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