Suppose that a hypothetical economy has the following relationship between its real domestic output and the input quantities necessary for producing that level of output.

Input quantity	Real domestic output
400	800
300	600
100	200

(a) What is the level of productivity in this economy? (b) What is the unit cost of production if the price of each input is $2.00? (c) If the input price decreases from $2 to $1.50, what is the new per unit cost of production? What impact would this have on the short-run aggregate supply curve? (d) Suppose that instead of the input price decreasing, the productivity had increased by 25%. What will be the new unit cost of production? What impact would this change have on the short-run aggregate supply curve?

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