In the 1970s, the United States federal government created a Department of Energy. This is a time when the OPEC (Organization of Petroleum ExportingCountries) cartel first became prominent. Identify how this action might have impacted the three major macroeconomic goals of our economy.

2. Suppose you live in a community of 100 people where everyone is able and seeks to work. If 80 people are over 16 years old and 72 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.a.What is the business cycle?

b.Explain what is happening during

each phase of the cycle with:

I. output

II. employment

II. and inflation