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Consumer demand for goods and services increases, and companies invest in new equipment that will increase production. But production cannot always keep up with consumer spending during a boom. If the supply of goods and services rises less than the demand for them, a nation may experience a period of inflation (rapidly rising prices). 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Today, Americans enjoy one of the world's highest standards of living. There have also been periods when the economy did not grow. In some ways, tracing the growth of the U.S. economy is like following the path of a roller coaster. Sometimes the economy zooms to great heights of prosperity. At other times, many workers cannot find work and factories are idle. Periods of above average business activity are called booms. Brief and small declines in business activity are known as recessions. Lengthy and large drops are called depressions. During a boom, total production and employment rise. Consumer demand for goods and services increases, and companies invest in new equipment that will increase production. But production cannot always keep up with consumer spending during a boom. If the supply of goods and services rises less than the demand for them, a nation may experience a period of inflation (rapidly rising prices). 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