Which term describes a period of extreme economic growth?

The term that describes a period of extreme economic growth is "boom." A boom is characterized by a significant increase in economic activity, typically marked by a surge in consumer spending, investment, and production. During a boom, businesses often see rising profits, unemployment rates tend to fall as more jobs are created, and there is a general sense of optimism in the economy. This phase can lead to higher levels of GDP and overall economic well-being.

In contrast, a recession denotes a period of economic decline, where economic activity slows down, usually defined by two consecutive quarters of negative GDP growth. Decline refers to a general downturn in economic performance rather than an extreme growth phase. A slump is often synonymous with a recession, indicating a prolonged period of low economic activity. Therefore, a boom distinctly represents the peak of economic expansion, making it the correct choice in this context.