Question

How boom leads to overheating of economy?

Answer 1

Economic booms tend to be unsustainable and are often followed by a bust – an economic recession or downturn. Hence the phrase “Boom and Bust”.

Answer 2

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here is your answer
Because it creates a bubble which, if got bigger, can lead to crisis if burst. ... Such behaviour is sometimes referred to as a boom or (particularly in the stock market) ..