The inflation rate is decreasing and unemployment is rising. the economy is likely in

Contraction (recession).

Explanation:

Contraction (recession) refers to a phase of the business cycle in which the economy as a whole is in decline. A contraction generally occurs after the business cycle peaks, when the economy goes through stages as innovation, supply, demand, laws, and politics affect what is made and what is purchased but before it becomes a trough. The first stage of an economy is an expansion where incomes increase with production pushing more consumption and making more work and is marked by the growth of GDP. The next stage is when an economy reaches the high point of this growth known as the peak. After the peak, when a country's real gross domestic product (GDP), the most-watched indicator of economic contraction, has declined for two or more consecutive quarters, then a contraction has occurred.

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