Economic booms can cause problems as well as create benefits because they are often accompanied by
A)pressure on the government budget deficit to rise.
B)excessive labour- force participation.
C)deflationary pressures.
D)inflationary pressures.
E)rising real interest rates.

Question

Quizplus · Accepted Answer

Economic booms typically result in increased demand for goods and services, which can push up prices and cause inflationary pressures. This can be problematic for the economy as it can lead to a decrease in purchasing power for consumers, an increase in costs for businesses, and potential imbalances in the economy's overall stability.

Economic Booms Can Cause Problems as Well as Create Benefits