With respect to labor supply, the income effect leads a person to want to work more in order to raise his or her income

What is the short-run break-even price? What are economic profits at this price? Why would a firm be willing to operate permanently at this price?

What will be an ideal response?

In general, autonomous spending increases have a lower multiplier effect on real GDP when the economy is open to international trade

a. True b. False Indicate whether the statement is true or false