Country X Country Y Country Z INDICATOR YEAR NOW YEAR NOW YEAR NOW AGO AGO AGO Unemployment 5.5% 3.2% 7.9% 9.3% 5.5% 5.4% rate GDP growth rate 3.1% 6.9% 0.3% -1.2% 3.5% 3.7% Inflation rate 1.1% 8.4% 2.1% 0.0% 2.4% 2.3% 3. The economic health of Country Z A. The data above suggests that Country Z is currently in a(n) stage of the business cycle. During this phase GDP is This change in GDP will most likely lead to a(n) in unemployment because... These changes in GDP/Unemployment will likely cause inflation to because... B. During this phase in the business cycle businesses are producing (more/less) due to (increased/decreased) demand from households in the (product/resource) market. In turn, Businesses will (hire/lay-off) laborers in the (product/resource) market. This change in the demand for labor will (increase/decrease) demand for goods and services in the product market causing a(n) (increase/decrease) in prices known as (inflation/deflation)