A Recessionary Gap Is Usually Closed in the Long Run

question 61

Multiple Choice

A recessionary gap is usually closed in the long run by a(n) _____

• A) rightward shift of the short-run aggregate supply curve.
• B) leftward shift of the short-run aggregate supply curve.
• C) upward movement along a fixed short-run aggregate supply curve.
• D) decrease in aggregate demand.
• E) downward movement along a fixed short-run aggregate supply curve.

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Definitions:

Stop Payment Order

A stop payment order is a request made to a bank or financial institution to cancel a check or payment before it is processed or cashed.

Holder In Due Course

A party possessing a negotiable instrument, such as a check or promissory note, who has certain rights to payment and is protected against some defenses if the instrument was acquired in good faith.

Authorized Representative

An individual or entity legally empowered to act on behalf of another person or organization.

Legal Entity

A legal entity refers to any company or organization that has legal rights and obligations, including the capacity to enter into contracts and loans, sue and be sued.