The Following Table Gives Information About the Relationship Between Input

question 58

Multiple Choice

The following table gives information about the relationship between input quantities and real domestic output in a hypothetical economy: Suppose that the price of each input increased from $5 to $8.The per unit cost of production in the above economy would:

• A)rise by $1.50 and the aggregate supply curve would shift to the right.
• B)rise by 60 percent and the aggregate supply curve would shift to the left.
• C)rise by 60 percent and the aggregate demand curve would shift to the left.
• D)fall by $1.50 and the aggregate demand curve would shift to the right.