Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Refer to the above information. All else being equal, if the price of each input increased from $4 to $6, productivity would: a fall from 2 to 3. b fall from 0.5 to 0.33. c rise from 1 to 2. d remain unchanged.

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Paddington

8 April, 13:55

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Refer to the above information. All else being equal, if the price of each input increased from $4 to $6, productivity would: a fall from 2 to 3. b fall from 0.5 to 0.33. c rise from 1 to 2. d remain unchanged.

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Abraham Butler · Answer 1

In the real domestic output in an economy productivity would "Remain Unchanged"

Explanation:

In the given scenario the real GDP calculation utilizes the costs of the base year while the ostensible GDP is registered utilizing current costs, subsequently when cost increments from $4 to $6 the genuine residential yield will stay unaltered