Answer the Question on the Basis of the Following Information $\begin{array} { c c } \text { Input Quantity } & \text { Real Domestic Output } \\100 & 200 \\150 & 300 \\200 & 400\end{array}$

question 39

Multiple Choice

Answer the question on the basis of the following information about the relationship between input quantities and real domestic output in a hypothetical economy: $\begin{array} { c c } \text { Input Quantity } & \text { Real Domestic Output } \\100 & 200 \\150 & 300 \\200 & 400\end{array}$ Refer to the table.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.

---

Definitions:

Leisure

Free time when one is not working or occupied, offering the opportunity for rest, recreation, or other personal activities.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, reflecting how individuals respond to changes in income or working conditions.

Indifference Curve

A set of points, each point representing a combination of goods X and Y, all of which yield the same total utility.

Marginal Utility

The supplementary contentment or advantage received from the consumption of one more unit of a product or service.