If a Contractionary Gap Exists and Resource Prices Are Not

question 80

Multiple Choice

If a contractionary gap exists and resource prices are not flexible downward,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)not shift leftward to return the economy to its potential output
• D)not shift rightward to return the economy to its potential output
• E)become the long-run aggregate supply curve

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