True or False:
1. The aggregate supply curve represents how much RGDP suppliers will be willing to produce at different price levels.
2. Nominal wages are assumed to adjust quickly in the short run.
3. The long-run relationship refers to a period long enough for the prices of outputs and all inputs to fully adjust to changes in the economy.
4. In the short run, the aggregate supply curve is vertical.
5. In the short run, the slow adjustments of input prices are due to the longer-term input contracts that do not adjust quickly to price-level changes.
6. When price level rises in the short run, it will increase producers’ profit margins and make it in the producers’ self-interest to expand their production.
7. If the price level falls, input prices, producers’ profits, and real output will fall in the short run.
8. When the price level falls, producers can be fooled into supplying more as a result of a short-run misperception of relative prices.