An Economy Has Historically Grown at a Rate of 1

Multiple Choice

An economy has historically grown at a rate of 1.25%.Economic activity decreased every quarter over the past year,but the decline stopped this quarter.The economy is expected to grow at a rate of 1.4% in the near future,and the monetary authorities are concerned that inflation may increase.This economy is probably in the _____________ stage of the business cycle.

A) expansion
B) recovery
C) contraction
D) trough