Final answer:
Economic busts can be turned into booms through lower interest rates, fiscal stimulus, and technological advancements, while booms can end due to higher interest rates, fiscal contraction, and market shocks.
Recessions require government intervention via monetary and fiscal policies, and the fostering of a stable political and economic environment is essential for supporting economic development.
Step-by-step explanation:
Forces that might turn an economic bust into a boom can include monetary policy changes, such as lowering interest rates to encourage borrowing and investment, and fiscal policy measures, such as increasing government spending or cutting taxes to stimulate demand. Technological advancements or discovery of new resources can also spur economic growth.
On the other hand, forces that might end an economic boom include central banks raising interest rates to prevent overheating, reductions in government spending, market speculation leading to asset bubbles, and shocks such as geopolitical events or natural disasters.
Economic recession can be caused by a variety of factors, including high inflation, high interest rates, reduced consumer confidence, and falling demand.
The appropriate government action to alleviate a recession often includes both monetary policy, like reducing interest rates, and fiscal policy, such as implementing stimulus spending or tax relief to boost economic activity.
Factors that encourage economic development include a stable political environment, access to financial resources, and adequate infrastructure.
Conversely, factors that hinder development may include political instability, poor access to capital, and inadequate education systems. Whether the end result of economic transition outweighs the internal challenges faced depends on how well the transition is managed and the nature of the long-term benefits achieved.