Consider the following table that contains some macroeconomic data for a particular economy.

Economic Indicators

2020

2019

Real GDP Annual Growth Rate

-1.80%

-1.60%

Working Age Population

11.2 million

11.3 million

Employed Persons

1.5 million

1.5 million

Unemployed Persons

1.2 million

1.1 million

Consumer Price Index (CPI)

108

115

(a) Calculate the unemployment rate for this economy for 2020.

(b) Calculate the inflation rate for this economy for 2020.

(c) Given the GDP growth rate and your calculations in Parts (a) and (b), what stage of the business cycle do you think this economy is in? Explain your answer.