The Table Gives Information About the Relationship Between Input Quantities

question 21

Multiple Choice

$\begin{array} { | c | c | } \hline Input ~Quantity & Real ~Domestic ~Output \\\hline 100 & 200 \\\hline 150 & 300 \\\hline 200 & 400 \\\hline\end{array}$
The 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 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.

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