Write a paper of no more than 1,050 words on GDP, economic cycles, and macroeconomic measurements. Begin by assessing the extent of energy representation in the GDP. Think of energy in terms of input into the U.S. economy and business cycle fluctuations and how different sectors of the economy are affected. There are many excellent examples of the immediate effect of energy on the economy. The oil shocks of the 1970's is an example.
What are the components of GDP, and how does energy consumption enter each of these components? How would changes in energy prices, such as oil price shocks, possibly affect GDP growth? Please explain the related impacts on inflation and unemployment.