1) The respiratory system works by inhaling air through the nose and mouth into the lungs. During inhalation, the diaphragm and intercostal muscles contract to expand the lungs and decrease pressure, allowing air to rush in. 2) Gas exchange occurs in the alveoli where oxygen passes into the blood and carbon dioxide passes out of the blood. The air then exits during exhalation through the same process in reverse. 3) Tidal volume and vital capacity can be measured using a spirometer or peak flow meter. Tidal volume is the amount of air inhaled and exhaled during normal breathing, while vital capacity is the maximum amount of air that can be inhaled and