Identifying the Business Cycle Phase

As a portfolio manager at EconInvest, you are reviewing the current state of the business cycle to provide strategic advice for your clients' wealth plans. Recent data shows that the economy has recorded two consecutive quarters of declining GDP, rising unemployment rates, and consistently decreasing consumer spending. Given this information, you must determine the phase of the business cycle the economy is experiencing.

Which of the following best describes the current phase of the business cycle?