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- The effects of an economic boom include12:
- Rapid economic expansion resulting in higher GDP
- Lower unemployment
- A higher inflation rate
- Rising asset prices
- A positive output gap and inflationary pressures
- A current account deficit and declining export competitiveness due to high growth and inflation
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A boom is a period of rapid economic expansion resulting in higher GDP, lower unemployment, a higher inflation rate and rising asset prices. Booms usually suggest the economy is overheating creating a positive output gap and inflationary pressures.www.economicshelp.org/blog/glossary/booms/An economic boom implies that an economy is growing above its long term trend rate. This means that the rate of economic growth is high, but there tend to be inflationary pressures because demand is growing faster than supply. The impact of high growth and inflation will tend to cause a current account deficit and declining export competitiveness.www.economicshelp.org/blog/7383/economics/the … - People also ask
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