Question

Identify which stage of the business cycle the country is currently in based on the description shown. The country should have the phase of the business cycle (expansion, peak, contraction, and trough) and a brief explanation. 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

Based on the description provided for Brazil, the country is currently in the contraction phase of the business cycle.

Explanation:

• The mention of people feeling "defeated" and many being "without jobs for a long time" indicates high unemployment and economic distress, which are characteristic of a contracting economy.
• The closure of many businesses and the reduced operation capacity of those remaining suggest a decline in economic activity and consumer spending, further supporting that the country is experiencing a downturn.
• Overall, these signs point to a significant slowdown in economic growth, typical of the contraction phase of the business cycle.