A boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. It is a key characteristic of capitalist economies.
 | | Boom And Bust Cycle | | 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 capitalist economies. 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. | | Read More » | | Related to "Boom And Bust Cycle" | | | | Expansion | | Expansion is the phase of the business cycle where real GDP grows for two or more consecutive quarters, moving from a trough to a peak. | | Read More » | | | Contraction | | A contraction is a phase of the business cycle where a country's real gross domestic product (GDP) has declined for two or more consecutive quarters, moving from a peak to a trough. | | Read More » | | | Capitalism | | Capitalism is an economic system whereby monetary goods are owned by individuals or companies. The purest form of capitalism is free market or laissez-faire capitalism. Here, private individuals are unrestrained in determining where to invest, what to produce, and at which prices to exchange goods and services. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
No comments:
Post a Comment