True or False:
1. Along the short-run aggregate supply curve, we assume that wages and other input prices have time to adjust.
2. Along the long-run aggregate supply curve, we are looking at the relationship between RGDP produced and the price level, once input prices have been able to respond to changes in output prices.
3. Along the LRAS curve, a 10 percent increase in the price of goods and services is matched by a 10 percent increase in the price of inputs.
4. Along the LRAS curve, the economy is assumed to be at full employment.
5. In the long run, the economy will produce at the maximum sustainable level allowed by its capital, labor, and technological inputs, regardless of the price level.
6. Long-run equilibrium occurs wherever SRAS and AD intersect.
7. The economy can be in short-run equilibrium without being in long-run equilibrium.
8. Ceteris paribus, lower production costs will motivate producers to produce more at any given price level, shifting AS rightward.