Task1 - Interactionbetween Goods Marketand Labour Market-

Which influence does a negative output gap on the goods markets have on the labour market

of an economy? Which type of unemployment arises? Explain. Develop your solution using

the four-quadrant-scheme.

Task2 - ClassicalUnemployment

Why does classical unemployment emerge? Give reasons and depict the situation in a labour

market diagram.

Task3 - Trueor False?

Please give explanations.

a) Keynesian unemployment can be diminished by reducing wages.

b) Keynesian unemployment is determined by the notational labour demand.

c) A decrease in private household s savings rate leads to a decrease in aggregate de-

mand.

d) Short term aggregate supply increases if employees have an increasing preference for

spare time.

e) In a situation with classical unemployment employed people benefit at the cost of

unemployed people