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. Brazil. This place makes you so depressed that you can't wait to get back home. People seem defeated, mostly because many have been without jobs for a long time. Lots of businesses have closed down, and those that have managed to stay open are operating at reduced capacity.

Answer 1

Business Cycle Analysis

Brazil

Phase: Contraction

Explanation: Brazil is currently experiencing a contraction phase of the business cycle. The description indicates high levels of unemployment and a general sense of defeat among the population, suggesting that many individuals have been without jobs for a significant time. The closure of numerous businesses further reflects economic decline, as companies struggling to maintain operations or facing reduced capacity indicate decreased consumer demand and lower overall economic activity. This combination of high unemployment and business failures signifies that Brazil is in a recessionary state, characteristic of the contraction phase of the business cycle.