1. Why do economists and policymakers care about the business cycle?

2. Why and how do economists and policymakers use cyclical indicators?

3. What would our economy be like if unemployment were zero?

4. What would our economy be like if inflation were reduced to a zero rate?

5. What are the social costs of unemployment?

6. Show a graph that shows both inflation and unemployment over the past 30 years. Ask the students to point out the various events that caused these two series to fluctuate over time.