Final answer:
Crises in capitalism are attributed to a mix of factors including disproportionality in sector production, aggregate demand failure (Underconsumption Crisis), and the realization crisis (Tendency for rate of profit to fall). Keynesian economics supports the understanding of these crises, and they can be accompanied by social issues such as poverty, inequality, and environmental crises.
Step-by-step explanation:
The crisis in capitalism can be attributed to a combination of factors. These include A) Disproportionality between sectors in production, wherein some areas of the economy may outpace others, disrupting economic harmony. Another aspect is B) Underconsumption Crisis, or Aggregate demand failure, highlighting that a scenario where there is less demand for goods and services than the economy is capable of producing at full employment can lead to recessions. The final aspect, C) Realization crisis, refers to the Tendency for the rate of profit to fall, which can happen due to a variety of reasons, including increased competition, rising wages, or the saturation of markets. All of these can contribute to the business cycles of recession and recovery.
Keynesian economics posits that recessions occur when aggregate demand is less than what could be produced with full employment, a view which broadly encompasses points B and C as contributing factors to economic crises within capitalism.
Furthermore, accompanying some of these economic issues are the social issues of poverty, inequality, and environmental crises, which are also frequently cited as inescapable consequences of capitalist economies. Addressing the cyclical nature of capitalist crises often involves government regulatory interventions and use of fiscal policy.