Innovations also have a decisive impact on the occurrence of business cycles, and these phenomena tend to be treated as inseparable. An economic boom consists of the creation of new purchasing power by financing the acquisition of resources in order to start new production using credit lines. As soon as a newly developed product appears on the market, prices increase in the entire economy more slowly because of increased supply as pioneers begin to pay off their debts. Its inevitable consequence, once a critical point has been reached through reduced demand, is depression. For innovations in Schumpeter’s sense, the period of depression constitutes a process of resorption and liquidation of innovator’s profit (1960, p. 375). However, at the same time, a new development phase is initiated, since economic processes are now carried out by entrepreneurs in a more economical manner. Older, less effective methods and means of production or products are eliminated, owing to the increased costs borne by old enterprises during a boom, followed by the elimination of their income, since at this stage consumer demand is directed at the newly developed products.