Correct Answer: Inflation and employment rates

Solution : The correct answer is (D) Inflation and employment rates

The economic environment encompasses factors related to the overall economic conditions and performance of a country or region. This includes indicators such as inflation rates, employment rates, GDP growth, interest rates, fiscal policies, and economic indicators that reflect the state of the economy. Inflation rates and employment rates, specifically, are key economic factors that provide insights into price stability and the availability of jobs within an economy. These factors have a significant impact on business operations, consumer behavior, investment decisions, and overall economic activity. Therefore, inflation and employment rates represent the economic environment.