Question

Which of the following reflects a “bust” phase in a capitalist economy? Demand is high, supply is high, and employment is low. Spending on goods from all businesses is high. Consumer demand encourages businesses to expand production. Employment, profits, and incomes are low.

Answer 1

d/ the last one Employment, profits, and incomes are low. hope i helped. plz mark prainyest

Answer 2

The correct answer is: "Employment, profits, and incomes are low."

The term bust refers to a period of economic recession or negative economic growth, a period in which there is a contraction of the total output generated in a certain state or region. Economic booms and busts constitute the business cycles.

As the total output generated is lower, the profits derived from selling the goods and services produced are lower too. Less people would be necessary to produce that smaller quantity of products, so employment levels will decrease as well. In general, less factors of production are employed in the production process (labor as explained above, and also ess land or capital), and therefore the amounts generated as incomes or returns of these factors are reduced during the recession.