Differentiate between an economic boom and bust.

The economy goes through cycles of "up" times and "down" times. Many times the economy is connected to the concept of supply and demand. Watch the video clip below to understand how supply and demand affects the economy. After watching the video find out what kind of trends occur during a boom and bust economy.

Economic Boom- when the economy is strong and growing. During an economic boom look for :

  • low unemployment
  • high pay for workers
  • factories producing many goods
  • new businesses starting and growing
  • people spending lots of money
  • investors making money in the stock market

What are some examples that proves that the 1920s was an economic boom era?

What are some signs around our town that displays an economic boom today?

Economic Bust-The economy is weak and not growing. It is also called a recession. During an economic bust look for:

* high unemployment

  • few jobs for workers
  • low pay for workers
  • factories producing fewer goods
  • business closing down
  • inventors losing money in the stock market
  • people do not spend as much money on houses and cars

What are some examples that proves that the 30s was an economic bust? Great-Depression-1930s.jpg
What are some examples of economic bust within our own town?
Check out the example document of pictures of today's world. Determine whether they show a boom or bust economy.