boom and bust cycle


A type of cycle experienced by an economy characterized by alternating periods of economic growth and contraction. During booms an economy will see an increase in its production and GDP. During busts an economy will see a fall in production and an increase in unemployment.

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The boom and bust cycle was really hard to manage and we were all having a rough time understanding the process.

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The boom and bust cycle in recent years had destablized invesrments, and the economist was weary thst the boom was ending.

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To insulate oneself from the normal Boom and Bust Cycle of the bond market individuals should diversify their holdings to include varied types of investments.

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