Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. If productivity increased such that 3000 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 increase.
B. increase and aggregate supply would decrease.
C. remain unchanged and aggregate supply would remain unchanged.
D. decrease and aggregate supply would decrease.
Answer: A
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A) assure that Federal Reserve Banks will receive deposits with which they can purchase income-earning assets. B) enable the government to borrow in emergencies. C) protect the liquidity of the banking and monetary system. D) protect the solvency of the commercial banking system. E) serve as a control lever for central banking authorities.
Which international account is used to record payments for imports, receipts from exports, net interest paid abroad and net transfers?
A) the capital and financial account B) the current account C) the official settlements account D) the trade account