1. Analyze and determine what will happen in the short-run and long-run macroeconomy. Do not worry about the exact cause of the increase in price of energy or whether some forms of energy increase in price by a higher percentage than other forms. Rather, just assume that all sources of energy have increased in cost by the same percentage. What will happen to the level of prices? To the output of the economy? To unemployment?

2. How would Scentsy, the wax burning company, decisions change based on what you've learned in Chapter 15 (and from previous chapters, where applicable)? Would they expand or contract their workforce? Would they expand their capital? Are there other changes Scentsy might make because of the increase in energy prices? Make sure that you explain why scentsy may make those changes, and consider both the short-run and long-run effects on the economy.