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:

Net Earnings

The amount of income left after deducting taxes, benefits, and other expenses from gross earnings; often referred to as take-home pay.

Financial Support

Monetary assistance provided to an individual or organization to help cover expenses.

Employee

An individual who works for another person or business in exchange for compensation.

Dependent

A person who relies on another, especially a family member, for financial support.