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- Impacts of an economic boom include12:
- Positive growth in key economic indicators, such as GDP.
- Expansion phase and increased consumer spending.
- Possibility of inflation due to high demand.
- Wage inflation due to labor shortages.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Positive growth in key economic indicators, such as GDP, over a period signals a booming economy. A boom indicates an expansion phase. It can grow into a bubble, though, that ultimately bursts to create a recession. High consumer spending in the boom phase, if overdone, can stimulate inflation.www.thebalancemoney.com/economic-boom-4067…If economic growth is substantially above the long run trend rate, we will tend to see:
- Rising inflation. Demand grows faster than supply. Therefore firms put up prices.
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