1. Which costs are caused by unemployment?
2. Calculate the unemployment rate:
Number of inhabitants: 10 million
- Labour-force participation: 62 %
- Unemployed persons: 455'000
3. Which types of unemployment are there?
Which type is observed during a recession?
4. What are automatic stabilizers?
How do they work during the economic cycles?
5. GDP is increased by 120 due to an investment of 40. Calculate:
the multiplier;
the marginal propensity to consume (MPC);
the marginal propensity to save (MPS).