Refer to Figure 13.1. All else equal, if the economy is in a recession, expansionary fiscal policy would result in a movement from

When the production of a good involves several inputs, an increase in the cost of one input will usually cause total costs to

A) rise more than in proportion. B) rise less than in proportion. C) remain unchanged. D) rise by the exact amount of the input price increase.

When the price of a good changes, the substitution effect can be found by comparing the equilibrium quantities purchased

A) on the old budget line and the new budget line. B) on the original indifference curve when faced with the original prices and when faced with the new prices. C) on the new budget line and a hypothetical budget line that is a shift back to the original indifference curve parallel to the new budget line. D) on the new indifference curve.