4. Suppose that the following table shows an economy’s relationship between real output and the inputs needed to produce that output: LO3

a. What is podr uctivity in this econo?my

b. What is the per-unit cosf t poor duction if the pricef o each input unit is $2?

c. Assume that the input pricee ainsecrs form $2 to $3 with no accompanying change in productivity. What is the new per-unit cost of production? In what direction would the $1 increase in input price push the economy’s aggregate supply curve? What effect would this shift of aggregate supply have on the price level and the level of real output?

d. Suppose that the inecarse in input price does not occur but, instead, that productivity increases by 100 percent. What would be the new per-unit cost of production? What effect would this change in perunit production cost have on the economy’s aggregate supply curve? What effect would this shift of aggregate supply have on the price level and the level of real output?

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Input Quantity Real GDP 150.0 $400 112.5 300 75.00 200