According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not

Frictional and structural unemployment both exist when

A) the economy is at the peak of the business cycle. B) the economy is in long-run equilibrium. C) the economy is in an expansionary phase. D) the economy is in short-run equilibrium.

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?

a. Real GDP falls, and current international transactions become more negative (or less positive). b. Real GDP rises, and current international transactions become more negative (or less positive). c. Real GDP and current international transactions remain the same. d. Real GDP rises, and current international transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.