One of the stages of the business cycle and is defined as two consecutive quarters of positive economic growth. See business cycle. It is usually associated with high employment and, thus, more people with money (income) to spend on a business’s product / service and thus, high demand for products / services, less price sensitivity, and increased profits and improved liquidity for businesses in general. (There is also more tax for the government, therefore more funds on public expenditure, resulting in higher standards of living, and increased consumer and business confidence). During a boom prices generally increase but so do costs as firms compete for resources, particularly labour to fulfil the growing demand. This general rise in costs and price often leads to inflation.