Create a document and identify which stage of the business cycle each country is currently in based on descriptions below. Each country should have the phase of the business cycle (expansion, peak, contraction, and trough) and a brief explanation for full credit. Make sure to label your answers.

Question

Spain. Here, people are happily busy. Almost everyone has a job and makes a good income. They spend freely, and businesses respond by offering a steady outflow of new products.

Answer 1

Business Cycle Evaluation Document

Country Analysis

Spain

Phase of the Business Cycle: Expansion

Explanation: Spain is currently experiencing an expansion phase of the business cycle. This is characterized by low unemployment and a high rate of job creation, leading to increased consumer confidence and spending. The description indicates that people are happily busy and almost everyone is employed, which reflects strong economic growth. Additionally, businesses are actively responding to increased consumer demand by releasing a variety of new products, further signifying that economic activity is thriving and contributing to the overall expansion of the economy.