Country #2 Econoland Key Economic Indicators Inflation Rate 1.4% Unemployment Rate 11.3% GDP Growth Rate 0.8% Based on the KEY INDICATORS, answer the following questions: What phase of the business cycle is this country in? C recession recovery

Based on the key economic indicators provided for Econoland, we can analyze the phase of the business cycle the country is in.<br /><br />1. Inflation Rate: 1.4% - This is relatively low, indicating that there is not much inflationary pressure in the economy.<br /><br />2. Unemployment Rate: 11.3% - This is a high unemployment rate, suggesting that a significant portion of the labor force is not currently employed.<br /><br />3. GDP Growth Rate: 0.8% - This is a low GDP growth rate, indicating that the economy is not growing at a robust pace.<br /><br />Considering these indicators, Econoland appears to be in a recessionary phase of the business cycle. A recession is typically characterized by a decline in economic activity, which is reflected in the low GDP growth rate and high unemployment rate. The low inflation rate also suggests that there is not much upward pressure on prices, which is consistent with a recessionary environment.<br /><br />Therefore, the correct answer is:<br />C. recession