12. which of the following reflects a \bust\ phase in a capitalist economy? demand is high, supply is high…
12. which of the following reflects a \bust\ phase in a capitalist economy? demand is high, supply is high, and employment is low. employment, profits, and incomes are low. consumer demand encourages businesses to expand production. spending on goods from all businesses is high.
Answer
Brief Explanations:
In a capitalist economy, the "bust" phase is a downturn. During this phase, economic activity contracts. Low employment means fewer people are working, which leads to low incomes. With reduced consumer spending, businesses have low profits. High - demand and high - supply scenarios are not typical of a bust phase, nor are scenarios where consumer demand encourages expansion or high spending on goods.
Answer:
Employment, profits, and incomes are low.