Which of the following reflects a “bust” phase in a capitalist economy?

Question

(1 point)
Responses

Employment, profits, and incomes are low.

Employment, profits, and incomes are low.

Consumer demand encourages businesses to expand production.

Consumer demand encourages businesses to expand production.

Spending on goods from all businesses is high.

Spending on goods from all businesses is high.

Demand is high, supply is high, and employment is low.

Answer 1

The option that reflects a “bust” phase in a capitalist economy is:

Employment, profits, and incomes are low.

During a bust phase, economic activity declines, leading to lower employment rates, reduced profits for businesses, and lower incomes for workers.