(1) The text notes that changes in oil prices can affect the inflation unemployment outcome. What effect does the changes in oil prices may have on these two variables?

(2) The introduction to this chapter suggests that unemployment fell, and inflation generally fell, through most of the 1990s. What phase (Phillips, stagflation, or recovery) does this represent? In relation to the U.S. experience from the 1960s until the 1990s, what was unusual about this?

(3). Suppose that declining resource supplies reduce potential output in each period by 4%, what kind of monetary policy would be needed to maintain a zero rate of inflation at full employment?

(4). The Case in Point titled "Some Reflections on the 1970s" describes the changes in inflation and in unemployment in 1970 and 1971 as a watershed development for macroeconomic thought. Why was an increase in unemployment such a significant event?