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

question 116

Multiple Choice

If resource prices are "sticky" downward and a recessionary gap develops,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.