Multiple Choice
Suppose that an economy produces 2,400 units of output, employing 60 units of input, and the price of the input is $30 per unit.If productivity increased such that 3,000 units are now produced with the quantity of inputs still equal to 60, then per-unit production costs would
A) decrease and aggregate supply would decrease.
B) decrease and aggregate supply would increase.
C) increase and aggregate supply would decrease.
D) remain unchanged and aggregate supply would remain unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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