Explain how the unemployment rate is calculated and how the data are gathered.

b) Consider the following equation: u = 0.4(g 3%) where u is the change in unemployment (in percentage points) g is the growth rate of GDP in percent Identify the equation, explain the mechanisms underlying it and discuss its relevance (or otherwise) to the recent pattern of UK unemployment, including during the covid crisis.

c) Assume that the covid crisis can be represented as an exogenous fall in consumer spending. Using the "Keynesian Cross" diagram, show the impact in a Keynesian economy and explain how it illustrates the role of the multiplier.