Each person in the population can be classified as employed, unemployed, or not in the labor force

Suppose TC = 10 + (0.1 ? q2). If there are 100 identical firms in the market, the market supply curve is

A) Q = 1000 ? p. B) Q = 500 ? p. C) Q = 100 ? p. D) Q = 10.

Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?

a. The real risk-free interest rate falls and current international transactions become more positive (or less negative). b. The real risk-free interest rate rises and current international transactions become more negative (or less positive). c. The real risk-free interest rate and current international transactions remain the same. d. The real risk-free interest rate rises and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.