If Resource Prices Are "Sticky" Downward and a Recessionary Gap

question 3

Multiple Choice

If resource prices are "sticky" downward and a recessionary gap develops in an economy, the short-run aggregate supply curve will _____

• A) shift leftward to return the economy to its potential output.
• B) shift rightward to return the economy to its potential output.
• C) become a horizontal straight line.
• D) not shift rightward to return the economy to its potential output.
• E) become the long-run aggregate supply curve.