Suppose That an Economy Produces 2,400 Units of Output, Employing

Multiple Choice

Suppose that an economy produces 2,400 units of output, employing the 60 units of input, and the price of the input is $30 per unit.All else equal, if the price of each unit of input decreased from $30 to $20, then productivity would

A) increase from $40 to $90 and aggregate supply would decrease.
B) increase from $50 to $60 and aggregate supply would decrease.
C) increase from $60 to $70 and aggregate supply would increase.
D) remain unchanged but aggregate supply would increase.