In the short run, the additional output that results from hiring an additional unit of a variable input is the

In a recession, automatic stabilization ________ tax revenues and ________ the debt-GDP ratio

A) lowers, raises B) lowers, lowers C) raises, raises D) raises, lowers

In Figure 3-7, suppose D1 and S1 indicate the initial conditions in the market for ice cream. Which of the following changes would tend to cause the shift from D1 to D2 in the market for ice cream?

a. a decrease in the price of sugar, an ingredient used to produce ice cream b. an increase in the price of frozen yogurt, a substitute for ice cream c. abnormally cold weather that decreased consumer desire for ice cream d. an increase in the price of milk, an ingredient used to produce ice cream