Suppose that the table below shows an economy's relationship between real output and the inputs needed to produce that output: Input quantity Real domestic output 150 $ 400 112,5 300 75 200 a. What is the level of productivity in this economy? Instructions: Round your answer to two decimal places. 2.67 b. What is the per-unit cost of production if the price of each input unit is $3? Instructions: Round your answer to two decimal places. $ 1.13 c. Assume that the input price increases from $3 to $4 with no accompanying change in productivity. What is the new per-unit cost of production? Instructions: Round your answer to two decimal places. $ 1.5 In what direction would the $1 increase in input price push the aggregate supply curve? The aggregate supply curve would shift to the left What effect would this shift of the short-run aggregate supply have on the price level and the level of real output? |Price level woul d. Suppose that the increase in input price does not occur but, instead, that productivity increases by 75%. What would be the new per-unit cost of production? Instructions: Round your answer to three decimal places. $ .583