9781422281185

During “bust” periods in the economy, such as the Great Recession from 2007 to 2009, stores have a hard time making a profit and many will close their doors and go out of business.

estate value increases. Banks are happy to loan money to people. These times do not last forever, though. Inevitably, the bust comes. The economy shrinks. There are fewer jobs. People who invest in stocks and bonds lose money. Many businesses close their doors. Others lay off workers and spend less. Real estate values decrease. Banks are reluctant to lend money to people. These bad times do not last forever, though, just like the boom times. This cycle repeats regularly. Sometimes the boom times last longer and grow greater than others. Bust times can vary as well. Some last longer and are more severe than oth-

Economic Booms and Busts

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