2. Suppose you live in a community of 5,000 people where everyone wants to work and seeks employment. If 4,000 people are over 16 years old and 3,000 of them are employed, what is the unemployment rate in this community?

3. What are the three major types of unemployment? What are their causes?

4. Discuss the costs associated with high inflation.

5. Describe the four phases of the classical business cycleexplaining how employment is typically affected during eachphase?