Economic Cycle Diagram. A boom occurs when real national output is rising at a rate faster than the trend rate of growth. Gdp measures the aggregate value of goods and services and is used to depict the overall wealth of an economy.
Factors such as gross domestic product gdp. A boom is characterized by a period of rapid economic growth whereas a period of relatively stagnated economic growth is a recession. The economic cycle is the natural fluctuation of the economy between periods of expansion growth and contraction recession.
Higher gdp usually correlates with more well off citizens.
The economic cycle is a trend of upward and downward movements of gdp that ultimately determines the overall long term growth of an economy. The late 1980s saw an economic boom with quarterly growth reaching over 2. The time period to complete this sequence is called the length of the business cycle. In the expansion phase there is an increase in various economic factors such as production employment output wages profits demand and supply of products and sales.
