How is a "boom" characterized in economic terms?

A "boom" in economic terms refers to a period of rapid economic expansion and rising GDP. During a boom, businesses thrive, consumer spending increases, and economic activity escalates significantly. This typically results in higher employment rates as companies hire additional workers to meet growing demand. When GDP rises, it indicates that the economy is producing more goods and services, leading to higher income levels and greater consumer confidence.

This contrasts with the other scenarios mentioned in the incorrect options. For instance, stagnant GDP and high unemployment would indicate economic stagnation rather than a boom. Decreased consumer confidence usually occurs during downturns, which is also opposite to the characteristics of an economic boom. High inflation rates and low investment could suggest economic instability or an overheated economy but do not specifically define a boom, as a healthy boom is often accompanied by balanced inflation and ongoing investment in growth. Thus, the defining features of a boom center around significant increases in economic activity and GDP growth.