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Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity Real GDP

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Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity Real GDP 300 $ 400 225 300 150 200 Instructions: Enter your answers rounded to 2 decimal places. a. What is the level of productivity in this economy? 1.33 b. What is the per-unit cost of production if the price of each input unit is $4? $[ c. Assume that the input price increases from $4 to $5 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? (Click to select) What effect would this shift of aggregate supply have on the price level and the level of real output? The price level would decrease and real output would remain the same. Both the price level and real output would remain the same. In what direction would the $1 increase in input price push the economy's aggregate supply curve? (Click to select) What effect would this shift of aggregate supply have on the price level and the level of real output? The price level would decrease and real output would remain the same. O Both the price level and real output would remain the same. The price level would increase and real output would decrease. O The price level would decrease and real output would increase. d. Suppose that the increase in input price does not occur but, instead, that productivity increases by 50 percent. What would be the new per-unit cost of production? What effect would this change in per-unit production cost have on the economy's aggregate supply curve? It would cause the aggregate supply curve to shift (Click to select) v]. What effect would this shift of aggregate supply have on the price level and the level of real output? O The price level would decrease and real output would increase. O Both the price level and real output would remain the same. O The price level would increase and real output would decrease. The price level would decrease and real output would remain the same

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