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. All else equal, if the price of each input decreased from $30 to $20, productivity would:
A. increase from $50 to $60 and aggregate supply would decrease.
B. increase from $60 to $70 and aggregate supply would increase.
C. increase from $40 to $90 and aggregate supply would decrease.
D. remain unchanged and aggregate supply would increase.
Answer: D
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