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1 which costs are caused by unemployment 2 calculate the

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).

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