True or False:
1. Any permanent change in the quantity of any factor of production available—capital, entrepreneurship, land, or labor—can cause a shift in the long-run aggregate supply curve but not the short-run aggregate supply curve.
2. Less and lower-quality capital will shift both the short-run aggregate supply curve and the long-run aggregate supply curve to the left.
3. Added investments in human capital will shift the short-run aggregate supply curve right but leave the long-run aggregate supply curve unchanged.
4. If entrepreneurs can find ways to lower the costs of production, then the short-run and long-run aggregate supply curves both shift to the right.
5. Successful oil exploration would leave LRAS unchanged because it would not change the total amount of oil in the earth.
6. An expanded labor force increases the economy’s potential output, increasing LRAS.
7. Increases in government regulations that make it more costly for producers shift SRAS left but leave LRAS unchanged.
8. The price of factors, or inputs, that go into producing outputs will affect only SRAS if they don’t reflect permanent changes in the supplies of some factors of production.