What is the boom and bust cycle?

The boom and bust cycle is a term used to describe the cyclical nature of economic growth and contraction. It is characterized by periods of rapid economic growth, followed by periods of slower growth or even recession. During the boom phase, businesses and consumers are optimistic and spending increases, leading to higher levels of economic activity. During the bust phase, economic activity slows and businesses and consumers become more cautious, leading to lower levels of economic activity.